U.S. Official Lew Urges Greece to Maintain Budget Reform Commitment, According to Reuters

By David Lawder and George Georgiopoulos

ATHENS – U.S. Treasury Secretary Jack Lew called on Greek officials to make further progress on budget and economic reforms to facilitate European debt relief and stimulate growth in Greece’s struggling economy.

After a meeting with Greek Finance Minister Euclid Tsakalotos in Athens, Lew emphasized the need for Greece to advance on crucial milestones due in October, which include following through on privatization plans and progressing with essential financial sector reforms.

In a news conference, Lew highlighted various strategies to enhance the sustainability of Greece’s debt, suggesting a potential easing of the primary budget surplus target of 3.5 percent of gross domestic product for 2018. The International Monetary Fund has previously stated that this target is too ambitious; however, Lew mentioned that it is ultimately up to Greece and its lenders to find a sustainable solution.

"In the end, it has to work," he remarked.

Lew stressed the importance of making reform progress so that European leaders can start discussions with the IMF regarding the timing and specifics of Greek debt relief, a commitment that Eurogroup lenders made in May.

"Establishing a sustainable path for Greece’s debt is vital for the country’s long-term economic health, and I encourage all parties to show flexibility to successfully conclude this fall’s negotiations," he stated.