‘We must be ready to renegotiate bailout deal’

THE Government must be ready to renegotiate the terms of the bailout later this year if Greece secures more favourable terms, according to the author of the latest Ernst & Young’s Economic Eye.

“If an opportunity opens itself to getting a deal on a more favourable rate or a more favourable timeframe (on the bailout) then you should be primed and ready to do that,” said Neil Gibson, author of the report in which he predicts the economy will fall 2.3% this year, resulting in a fourth year of recession.

This is more pessimistic than most other forecasts which anticipate modest growth, but Gibson said the report’s core message is that from 2012 on the economy will start to recover and grow by 1.1% next year.