Greek debt relief moves onto EU agenda
Moscovici - Tsakalotos - 2- Photo EU Council
(BRUSSELS) - Eurozone finance ministers held 'positive and constructive' talks Monday on the state of play of the first review of Greece's macroeconomic adjustment programme.
At an extraordinary meeting of the Eurogroup in Brussels, ministers welcomed a package of policy reforms from Greece, some of which were legislated in a vote last night at the Greek Parliament.
The broad-ranging reforms convered the pension system, reform of income tax and VAT, measures on the public sector wage bill, Greece's privatisation strategy, as well as the issue of non-performing loans.
On the occasion of Europe Day, the anniversary of the founding of the European Union, Commissioner for financial affairs Pierre Moscovici used the words of EU founder Robert Schuman, that Europe would be built in small steps, to describe Greece's progress.
He also welcomed the Greek parliamentary vote, saying the measures on pensions and income tax would have a permanent budgetary impact of around 2 per cent of Greek GDP.
Eurogroup head Jeroen Dijsselbloem said the agreement paves the way for successful completion of the first review of the programme.
He said the ministers had had a first round of discussion on Greek debt, but no decisions had been taken. "Of course any measures will be conditional upon full implementation of the measures agreed in the programme and will be considered later on," he added.
The Eurogroup concluded that further work was needed by the Greek authorities and the institutions on a mechanism regarding additional contingency measures. These measures will come into force only if additional effort is needed to reach the agreed primary surplus targets.
In a statement, the Eurogroup says the conclusion of the first review "will open the way for the disbursement of further financial assistance for Greece, following the implementation of prior actions by Greece and the relevant national procedures in the other euro area member states."
The statement also reaffirmed the Eurogroup's readiness to consider possible additional measures "to ensure sustainability of Greece's refinancing needs".
The Eurogroup is set to continue its discussion at its next meeting on 24 May.
Remarks by J. Dijsselbloem following the Eurogroup meeting of 9 May 2016