ATHENS: The European Commission said that the impasse over Greece’s fiscal crisis is strangling the economy, a forecast that will make it harder to meet bailout goals as talks to ease its liquidity squeeze drag on.
In its spring forecasts, published in Brussels on Tuesday, the commission sees the Greece economy growing just 0.5 percent this year, down from 2.5 percent in February. The projections come as Greek officials fan out to press their case to European policy makers on a deal on the country’s failing finances.
“The conditions to support growth are in place but uncertainty and tighter financing conditions are holding back the recovery and weighing on public finances,” the commission said. Even though the economy grew for the first time since 2007 last year, positive momentum has been “hurt by uncertainty since the announcement of snap elections in December,” it said.
