The European Commission adopted a set of measures on Wednesday (11 July) to closely monitor Greece’s fiscal policy after it concludes an eight-year-long bailout programme on 20 August, closing one of the darkest chapters in the single currency’s short history.
The ‘enhanced surveillance framework’ for Greece is meant to support the implementation of agreed reforms after the successful conclusion of the European Stability Mechanism (ESM) support programme, the Commission said in a statement.
It will enable the EU executive to scrutinize the commitments Greece undertook in exchange for fresh loans under the ongoing bailout programme, the third since 2010.
The move follows a historic deal achieved on 22 June between the Eurogroup and Greece, which included new debt relief for Athens and a strict monitoring of how it implements the agreed reforms in the coming years.
Prudent fiscal and macroeconomic policies for Greece
“It is important for the country to continue with prudent fiscal and macroeconomic policies, as well as to complete the agreed reforms. Enhanced surveillance is there to help Greece build confidence with markets, investors and companies: they all want stability and predictability,” noted Commission Vice-President Valdis Dombrovskis.
While Greek opposition parties have sought to portray the post-bailout surveillance as just another bailout programme, Economic and Financial Affairs Commissioner Pierre Moscovici reiterated that was not the case.
“Enhanced surveillance is not a fourth programme: it involves no new commitments or conditions. It is a framework to support the completion and delivery of ongoing reforms,” he argued.
Under the new scheme, EU officials will visit the country four times a year, instead of once as is the case in the current programme, to monitor implementation and “identify risks early, allowing for steps to be taken to address those risks at an early stage”.
Last tranche of loans worth €15 billion
Meeting in June, eurozone finance ministers sealed an agreement to reduce Greece’s massive debt of 178% of its GDP. Most of the money lent to Greece came from the euro area partners, either through the ESM or its predecessor, the European Financial Stability Facility (EFSF).
Under the June deal, before the bailout programme is concluded Greece will receive the last tranche of loans worth €15 billion to increase its cash buffer and service its debt.
It remains uncertain if Greece will try to tap international financial markets soon after exiting the bailout or allow some more time to rebuild investor confidence.
Read more at: euractiv
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
Photo Source: Wikimedia Commons Copyright: Andrikkos License: CC-BY-SA
