Thomsen anticipated that the recession in the Greek economy will overshoot the Memorandum forecasts by at least one percentage point, and warned that without acceleration of the reforms the budget deficit will be contained only marginally below ten percent of GDP.
He said the programme being implemented by the Greek government has produced some results thus far, but predicted that without invigoration of the structural reforms, it could run off track.
The easy part for the Greek government has finished, and from here on it needs to proceed with "tough structural reforms", he added.
Addressing the same conference, European Central Bank (ECB) executive board member Jurgen Stark warned that a debt restructuring would be a recipe for disaster.
A debt restructuring would wipe out part or all the capital of the Greek banks, "so it is a recipe for catastrophe", he warned, adding that it was a delusion to believe that restructuring would solve Greece's problems.
However, if the economic adjustment programme is implemented, then debt sustainability will be ensured and Greece will be solvent, he added.
ANA-MPA
