BusinessCompany NewsPwC warns of ballooning Athens budget

PwC warns of ballooning Athens budget

The cost of hosting the Athens Olympics in August is soaring and could leave the country with significant debts, PricewaterhouseCoopers has warned.

Link: FDs claim Olympic budgeting now is ‘unrealistic

With just over two months to go to the games, the Big Four firm has estimated the overspending could result in a 3% budget deficit for the country.

Operating costs have spiralled from €500m to €2bn and it has been reported that total spending on the games will reach €10bn.

PwC says the estimate that the games will cost the Greek government €4.6bn (from an initial €2.5bn) could also be too low.

Olympic bid FD gears up for crucial six months

Lloyd Barton, European economist at PwC and author of the report, said: ‘There are clear risks that the deficit could remain above 3% of GDP if the economy slows down more rapidly after the Olympics, or if public spending growth exceeds plans, as has tended to be the case in recent years.’

The report is not all bad news. It says Athens will benefit from cash being spent by those visiting the city for the games as well as from the added investment in housing, transport and communications.

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