Athens News Agency: News in English, 12-02-23

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Greek economy to shrink by 4.4% in 2012, Commission

[02] Agreement signed between DE.PA-Bulgargaz

[01] Greek economy to shrink by 4.4% in 2012, Commission

In its interim report on the EU’s economic outlook, the Commission said an economic recession in the country would be deeper from initial forecasts made in autumn 2011 (-2.8 pct) and added that the economy would also face the risks of a very low consumer and business confidence.

The Commission forecasts a decline in both external and domestic demand, as a result of a restructuring in the labor market and a cut in private sector wages. At the same time, exports will be less dynamic compared with the previous three years despite lower labor cost in Greece, while imports were also expected to decline further. www.amna.gr

The EU’s executive said it expected Greece to suffer a deflation this year (-0.5 pct), as a result of an expected decline in available incomes and consumption. The Commission stressed that the labor market was entering a painful adjustment period and that unemployment would continue rising in 2012. Minimum wage will fall by 22 pct and labor costs will fall by 15 pct on average in the next three years. The Commission said that a government’s decision to cut minimum wages was expected to raise hurdles in domestic demand and have a negative impact on employment in the short-term. In the medium-term, however, the Commission expects that these structural reforms will create favourable conditions for employment. amna

The Commission forecasts that the Eurozone economy will shrink by 0.3 pct in 2012, while the EU’s economy will remain stagnant this year. amna

[02] Agreement signed between DE.PA-Bulgargaz

According to the contract's terms, DE.PA will be procuring natural gas from Bulgargaz for the coverage of extraordinary needs of the Greek market and correspondingly it will supply the Bulgarian company when similar needs appear in the Bulgarian market. Another term foresees that the supplying of the Bulgarian network by DEPA will be taking place provided that the smooth supplying of the Greek market is not upset. amna

DEPA and Bulgargaz are already cooperating for the construction of the Greece-Bulgaria (IGB) pipeline, a project that is expected to begin in the last quarter of 2012.

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