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After all, from here, rates can't be cut any further, wages won't go up much, unemployment has further to rise and taxes will eventually have to go up.
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Mr Cavallo has hinted at further wage cuts.
Further wage and benefit cuts will come from salaried employees and from management.
In the next year, as previously announced, we face external cost headwinds, notably from further wage inflation, the recent business rates review and exchange rate movements.
A spokesman said the government would resist proposals for further wage cuts and was making "every effort to not touch labour relations".
Greeks will have to suffer further wage cuts than the 15% planned for the next three years in order to restore their country's competitiveness, senior EU officials have admitted.
Further wage falls seem likely, with young people fortunate enough to find work in a country with 57% youth unemployment now earning considerably less than their elders.
Only further wage and price reductions in the peripheral states – more "internal devaluation", to use the economic jargon – can deliver a sustainable recovery.
Bank of Greece governor George Provopoulos predicted a 5% slump in GDP this year and further wage cuts, and urged political leaders to stick to the current austerity plan.
That makes Mr Cavallo's target of balancing the budget even harder.Since further wage cuts would be political dynamite, officials are seeking savings elsewhere.
In Ireland a pact with the major unions is preventing further wage reductions, while in Greece the government is strangling corporations with taxes in order to avoid deeper wage and spending cuts.
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