Greece euro – Photo © vieraugen – Fotolia
(BRUSSELS) – The EU is set to end the ‘enhanced surveillance’ of Greece, the European Commission announced Wednesday, judging the country to have delivered on reforms and the policy commitments it made.
The decision follows exchanges with the Greek authorities, including at a Eurogroup meeting on 16 June, with the Commission acknowledging that Greece has delivered on the bulk of the policy commitments made to the Eurogroup upon its exit from the economic adjustment programme in June 2018.
The Commission adds that it is satisfied Greece has achieved effective reform implementation, even under the challenging circumstances created by the COVID-19 pandemic and, more recently, by Russia’s military aggression against Ukraine.
The Commission also noted that, as a result of Greece’s efforts, the resilience of the Greek economy has substantially improved and the risks of spill-over effects on the Euro area economy have diminished significantly. Which is why it says that maintaining Greece under enhanced surveillance is no longer justified.
The EU executive says the monitoring of the country’s economic, fiscal and financial situation will continue in the context of the post-programme surveillance (PPS) and the European Semester.
The monitoring of the outstanding reform commitments will be undertaken in the context of the first PPS report to be issued in November 2022, which it adds could serve as a basis for a Eurogroup decision on the final tranche of debt relief measures agreed in June 2018.
Major reforms and investments are also foreseen in the Greek recovery and resilience plan. The Commission welcomes Greece’s achievements and its commitment to keep on carrying out reforms beyond the end of enhanced surveillance.
Executive Vice-President Valdis Dombrovskis, and Economy Commissioner Paolo Gentiloni have already informed the Greek authorities. Their letter to Greek Finance Minister Christos Staikouras, and his reply, have been published online.
