GREEK OFFICIAL SAYS AUSTERITY MEASURES PAYING OFF
Economy Undersecretary Yannos Papantoniou
said the Greek economy was responding well to a two-year
government austerity program.
    He told reporters the evidence for this was in last year's
figures, which showed a drop in inflation from 25 pct to 16.9
and a reduction in the current account deficit from 3.3 billion
dlrs to 1.7 billion.
    Papantoniou said indications were encouraging that a target
of 1O pct inflation and a deficit of 1.25 billion dlrs would be
reached by the end of 1987.
    He predicted a "mild" recovery for the Greek economy in 1988
and said the government might be able to ease its tough incomes
policy, which has virtually frozen wages, and allow some
increases related to productivity.
    The austerity program, started by Prime Minister Andreas
Papandreou's socialist government in October 1985, resulted in
a wave of strikes late last year and more industrial action is
planned by trade unions and workers in coming months.
 REUTER
