Commission supports normalisation in Greece through activation of post-programme framework

 

Dombrovskis 2018

© European Union , 2018 / Photo: Benas Gerdziunas

This article is brought to you in association with the European Commission.

The Commission has adopted a decision to activate the enhanced surveillance framework for Greece to support the implementation of agreed reforms following the successful conclusion of the European Stability Mechanism (ESM) stability support programme.

On 20 August, Greece will conclude its ESM stability support programme, safeguarding its place at the heart of the euro area and the European Union. This major achievement is the result of the sacrifices of the Greek people, Greece’s commitment to reforms, and the solidarity of its European partners.

Today’s Commission decision to activate the enhanced surveillance framework, as provided for in Regulation (EU) No 472/2013 (part of the so-called “two-pack”), facilitates Greece’s normalisation, building on the progress that has been made. It will support the completion, delivery and continued implementation of reforms agreed under the programme, in line with the commitments made by the Greek authorities. This is crucial to building market confidence and thus to strengthening Greece’s economic recovery, particularly in the immediate post-programme period.

Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “The 20th of August will mark a new beginning 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. This is the way to attract more investment and ensure sustainable growth, which will bring new jobs and lead to better living and social conditions for the Greek people.”

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: Greece is now able to stand on its own two feet; that does not mean that it must stand alone. Europe will remain engaged and committed to supporting the country, and so will the European Commission. Today’s decision is about just that. 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. Why is that so important? Because Greece’s recovery is not an event: it is a process.”

The decision follows the agreement reached at the Eurogroup on 22 June, which confirmed that Greece had implemented all of the prior actions under the fourth and final review of the programme and decided upon a strong package of debt measures that will allow Greece to once again stand on its own two feet without financial assistance from partners. As part of the comprehensive agreement reached at the Eurogroup, the Greek authorities committed to complete the implementation of key reforms agreed under the current programme. They also made specific policy commitments to finalise a number of key structural reforms already initiated and agreed to the activation of the enhanced surveillance framework.

Enhanced surveillance is a robust post-programme surveillance framework that will allow for a close monitoring of the economic, fiscal and financial situation and its evolution in Greece. Its activation was considered appropriate due to the protracted nature of the crisis Greece has faced, the country’s debt position, the need for continued structural reform implementation to engender a sustainable economic recovery, and remaining vulnerabilities.

Enhanced surveillance will facilitate Greece’s return to a normal situation in which it sets its own policy objectives, while at the same time allowing for a prudent policy path well beyond the programme horizon. As per the Eurogroup agreement, this policy path should preserve the objectives of the key reforms taken up under the ESM programme. It does not entail any new reform elements or commitments, and therefore marks a clear end to years of financial assistance programmes.

This framework provides for quarterly review missions to identify risks early, allowing for steps to be taken to address those risks at an early stage. The Commission will issue quarterly reports of its findings to the European Parliament, the Hellenic Parliament and the Eurogroup Working Group/Economic and Financial Committee, as set out in the relevant Regulation. Activation of policy-contingent debt measures agreed at the Eurogroup meeting of June 22 will be based on positive reports conducted under the enhanced surveillance framework.

Today’s decision also provides that the Commission will undertake enhanced surveillance in liaison with the ECB and, where appropriate, the International Monetary Fund. The ESM will also participate. At the same time, as of the end of its stability support programme on 20 August, Greece will be fully integrated into the European Semester framework of economic and social policy coordination. Synergies between the enhanced surveillance and European Semester processes will be maximised so as to avoid unnecessary burdens on the administration and ensure coherence.

Background:

In August 2015, following a request from the Greek authorities, financial assistance to the country has been provided from the ESM in the form of a three-year stability support programme. This programme will conclude on August 20, 2018.

Regulation (EU) No 472/2013 (part of the so-called “two-pack”) provides the legal basis for the enhanced surveillance framework.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Financial markets appear to have rallied. Here’s one way to mitigate further shocks due to COVID-19

Future of Rohingya refugees in Bangladesh ‘hangs in the balance’ – UNHCR chief

UNICEF reports uneven progress in 30 years of child rights treaty

Public Policies for LGBT in Brazil

All at sea during COVID-19 lockdown? Try these sailor survival tips

European Union launches WTO trade dispute against Colombia’s unfair duties on frozen fries

In Venezuela, Bachelet calls on Government to release prisoners, appeals for ‘bold steps towards compromise’

How can entrepreneurship tackle the migration crisis in the EU?

Agreement on linking the emissions trading systems of the EU and Switzerland

International tourism arrivals hit record high in 2017, UN agency reports

How to build a better world for heart health after COVID-19

Trailing the US-EU economic confrontation

Mental Health: Role of the individual for their well-being in the pandemic

This chart shows how the energy mix is failing in the fight against climate change

Zimbabwe facing man-made starvation, says UN expert

EU mobilises €9 million to tackle the food crisis in Haiti

Humanitarian Aid 2016: The needs, the highlights, the crisis and the relief

LGBTQ+ inclusion on the other side of the screen

Pakistan-India crossing is a ‘Corridor of Hope’, UN chief says, wraps up visit with call for interfaith dialogue

European Youth Capital 2018 : Cascais

False promises to Small and Medium Enterprises

Negative inflation hits Eurozone, ECB to print and distribute one trillion euro earlier than expected

G20 LIVE: World Leaders in Turkey for G20 Summit. Global Economy will be discussed in Antalya

EU: Divided they stand on immigration and Trump hurricanes

Innovations for Content Professionals at the DCX exhibition 2018 in Berlin, in association with The European Sting

The global appetite for meat is growing, and it’s harming the planet

Schengen: MEPs ready for negotiations on temporary checks at national borders

Gig economy: Employment Committee MEPs want to boost workers’ rights

Why COVID-19 poses a particular threat in the world’s slums

Macron’s Presidency: what the young generation’s expectations are

LGBTQI+ and health care: do they deserve more attention from medical universities?

Bundestag kick starts the next episode of the Greek tragedy

2019 ‘a critical year’ for Somali politics and development says Security Council

Ten UN peacekeepers killed in a terrorist attack in northern Mali

As Yemen relief operations face funding gap, timing of surge in violence ‘couldn’t be worse’

80 million Chinese people no longer pay income tax

COVID19 Pandemic: The Mental Health of Colored Chicks

An economist explains the pros and cons of globalization

Natural hazards don’t always spell disaster: UN risk reduction chief

GSMA Mobile 360 – Digital Societies in Kuala Lumpur, in association with The European Sting

While EU Open Days 2013 discuss the 2020 strategy, Microsoft shares a glimpse of EU 2060

Italian electoral results to change Eurozone climate and weight on the Cyprus issue

Conquering COVID-19 through Collaboration

This is how we make cancer care sustainable and available for all

Ecocraft: take gaming to another level by greening Minecraft

US-China trade war is a ‘lose-lose’ situation for them and the world, warn UN economists

State aid: Commission refers Greece to Court for failure to recover incompatible State aid from mining company Larco

Political consensus critical ahead of Somalia election: UN mission chief

Doctors and nurses around the world are calling in sick

EU-China Light Bridge in Brussels signals the bright coming of the Year of The Dog

Reinforcing EU border security: Visa-exempt travelers will be pre-screened

The “Legend of the Sun” wishes you Happy Chinese New Year 2015 from Brussels

UN human rights office urges Egypt to immediately release detained protestors

Our healthcare systems are ailing. Here’s how to make them better

We have the tools to beat climate change. Now we need to legislate

Mental health: simple ideas that can make a difference

‘Revved up climate action’ needed to counter ‘prolonged’ and deadly storms like Cyclone Idai: Guterres

Modern humanitarian aid at times of global crises

Statement by OECD Secretary-General Angel Gurría on the outcome of COP 25

Societies must unite against ‘global crisis of antisemitic hatred’, Guterres urges

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s