Greece begins a new chapter following the conclusion of its stability support programme

Moscovici Greece 2018 August

Pierre Moscovici, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs holds a press conference on the conclusion of the stability support programme for Greece. © European Union , 2018 / Photo: Lukasz Kobus.

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

Greece has successfully concluded a three year European Stability Mechanism (ESM) stability support programme with its place at the heart of the euro area and European Union secured.

The successful conclusion of the programme is a testament to the efforts of the Greek people, the country’s commitment to reform, and the solidarity of its European partners.

European Commission President Jean-Claude Juncker said: “The conclusion of the stability support programme marks an important moment for Greece and Europe. While their European partners have demonstrated their solidarity, the Greek people have responded to every challenge with a characteristic courage and determination. I have always fought for Greece to remain at the heart of Europe. As the Greek people begin a new chapter in their storied history, they will always find in me an ally, a partner and a friend.”

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “The conclusion of the stability support programme is good news for both Greece and the euro area. For Greece and its people, it marks the beginning of a new chapter after eight particularly difficult years. For the euro area, it draws a symbolic line under an existential crisis. The extensive reforms Greece has carried out have laid the ground for a sustainable recovery: this must be nurtured and maintained to enable the Greek people to reap the benefits of their efforts and sacrifices. Europe will continue to stand by Greece’s side.”

A total of €61.9 billion in loans have been provided to Greece under this stability support programme on the basis of implementation of a comprehensive and unprecedented reform package. This stability support programme took a coordinated approach to tackle long-standing and deep-rooted structural issues that contributed to Greece experiencing an economic crisis.

Greece has taken measures to ensure its fiscal sustainability, bringing the general government balance from a significant deficit to surplus in 2017, which is projected to be maintained. These reform measures and consolidation efforts will have cumulative effects over time, and will thus continue to positively impact fiscal sustainability well beyond the conclusion of the programme.

The financial sector is now in a much stronger position as a result of successful recapitalisation operations, an overhaul of bank governance, and work to implement a strategy to reduce non-performing loans, which must be sustained.

The efficiency and efficacy of the public administration has been improved including through the introduction of new rules on the appointment, assessment and mobility of public sector employees; the establishment of the Independent Authority for Public Revenue; and measures to make the judicial system more efficient.

Finally, important structural measures have been put in place to improve Greece’s business environment and competitiveness to make Greece an attractive destination for investment and allow businesses already in place to expand, innovate and create jobs; as well as to establish sustainable and universal pensions, health care and social benefit systems, including a guaranteed minimum income scheme.

When taken together, these transformative reforms have laid the foundations for a sustainable recovery, putting in place the fundamental conditions needed for sustained growth, job creation and sound public finances in the years to come.

Improving economic indicators confirm that while work remains to be done, the efforts undertaken are already delivering tangible benefits by restoring order to public finances, reducing unemployment, and securing a return to growth. Economic growth has rebounded from -5.5% in 2010 to 1.4% in 2017 and is expected to remain around 2% in 2018 and 2019. The fiscal balance has progressed from a massive deficit of 15.1% in 2009 to a 0.8% surplus in 2017 (corresponding to a primary surplus of 4.2% in programme terms). Although unemployment remains unacceptably high, according to figures recently released by the Hellenic Statistical Authority, unemployment fell to 19.5% in May 2018, reaching a level below 20% for the first time since September 2011.

The conclusion of the programme marks the end of one chapter and the beginning of another for Greece. It will be necessary to remain focused on fully addressing the social and economic consequences that are the legacy of the crisis years. This will require that the Greek authorities maintain ownership of reforms and ensure their sustained implementation, as per their commitments at the Eurogroup meeting of 22 June 2018. This is crucial to ingraining market confidence and strengthening Greece’s economic recovery, particularly in the immediate post-programme period.

Greece will be fully integrated into the European Semester of economic and social policy coordination to help ensure that the country and its people reap the full benefits of the efforts undertaken in recent years. In the post-programme period, the completion, delivery and continued implementation of reforms agreed under the programme will also be monitored through an enhanced surveillance framework.

The Commission’s Structural Reform Support Service will continue to assist the Greek authorities, upon their request, in the design and implementation of growth-enhancing reforms.

Background

Greece has benefitted from financial assistance from its European partners since 2010. The Greek authorities requested a new ESM stability support programme on 8 July 2015. The European Commission signed, on behalf of the ESM, a Memorandum of Understanding for a three year stability support programme on 20 August 2015.

On 23 June 2018, the Eurogroup confirmed that all of the prior actions under the fourth and final review of the stability support programme had been completed. The Eurogroup also reached an agreement on a strong package of debt measures, in addition to the short-term measures already in place, to ensure that Greece’s debt is sustainable in the longer run. On 6 August 2018, the ESM approved a final disbursement of €15 billion of financial assistance.

In total, €288.7 billion in loans have been provided to Greece since 2010. This includes €256.6 billion from its European partners and €32.1 billion from the International Monetary Fund (IMF).

In parallel to the stability support programme, the Commission launched the plan for a “New Start for Jobs and Growth in Greece” in July 2015 to facilitate Greece maximising its use of EU funds to stabilise its economy and boost jobs, growth and investment. As a result of the exceptional measures adopted under the plan, Greece is now among the top absorbers of EU funds. For the period 2014-2020, Greece has already received almost €16 billion from a large pool of EU funds. This is equivalent to over 9% of the 2017 annual gross domestic product of Greece.

Greece is also the top beneficiary of the Juncker Plan’s European Fund for Strategic Investments (EFSI), relative to GDP. The EFSI is now set to trigger well over €10 billion in investments and support more than 20,000 small and medium-sized businesses in Greece.

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

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

European banking stress tests 2014: A more adverse approach for a shorter banking sector

The Japanese idea of ‘chowa’ – and how Asia can thrive in the future

We need to talk about how we define responsibility online – and how we enforce it

Big impact vs big exit: the social side of the start-up game presented at the WSA Global Congress in Vienna

What you need to know about the Sustainable Development Impact Summit

EU and China to do more in common if the global scene gets worse

Why Eurozone’s problems may end in a few months

Modern society has reached its limits. Society 5.0 will liberate us

Artificial Intelligence has a gender problem. Here’s what to do about it

The Commission tries to stop the ‘party’ with the structural funds

EU-Western Balkans summit in Sofia

This new way of understanding disease is changing medicine

7 amazing ways artificial intelligence is used in healthcare

“The Sea is vast as it admits all rivers”, Ambassador Yang Yanyi of the Chinese Mission to EU gives her farewell address in Brussels

Online radio and news broadcasts: Parliament and Council reach deal

Fragile countries risk being ‘stuck in a cycle of conflict and climate disaster,’ Security Council told

US-China trade war: Washington now wants control of the renminbi-yuan

Climate change and health: public health awareness in an international framework

Climate Change : An Already Health Emergency

In Gaza, UN envoy urges Israel, Palestinian factions to step back from brink of a war that ‘everybody will lose’

Will Eurozone be able to repay its debts? Is a bubble forming there?

EU readies for eventual annulment of the Turkish agreement on immigrants-refugees

EU Top Jobs summit ended with no agreement: welcome to Europe’s quicksand!

2016 crisis update: the year of the Red Fire Monkey burns the world’s markets down

2030 development agenda: Major breakthrough for world of work

Youth unemployment: No light at the end of the tunnel

Somalia has ‘once in a generation’ gender equality opportunity – UN Women chief

A Valentine’s Special: we can never overdose on love

EU Leaders’ meeting in Sofia: Completing a trusted Digital Single Market for the benefit of all

Merkel, Mercedes and Volkswagen to abolish European democracy

EU Commission: Banking and energy conglomerates don’t threaten competition!

THE ROAD TO GANESHA

Italy can stand the US rating agencies’ meaningless degrading

Cyprus banks under scrutiny

Fed, ECB take positions to face the next global financial crisis; the Brits uncovered

These charts show where the world’s refugees came from in 2017 – and where they’re heading

EU to spend €6 billion on youth employment and training futile schemes

Eurozone: There is a remedy for regional convergence

To win combat against HIV worldwide, ‘knowledge is power’, says UNAIDS report

Energy Union: EU invests a further €800 million in priority energy infrastructure

Measuring consumer confidence isn’t useful anymore. Here’s what we should do instead

COP21 Breaking News_10 December: UN Climate Chief Calls for Final Push to Meet Adaptation Fund Goal Very Close to Target

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

How can we build a workforce for our digital future?

Environment Committee MEPs vote to upgrade EU civil protection capacity

A Sting Exclusive: “Junior Enterprises themselves carry out projects focusing on the environment”, JADE President Daniela Runchi highlights from Brussels

Economy on a steady rise in Latin America and Caribbean region ‘despite international turbulence’ – UN report

Dramatic funding shortages a ‘severe catastrophe’ for people of Gaza: UN Coordinator

Frontline workers vaccinated in Uganda over Ebola fears, as top UN officials visit outbreak epicentre in DR Congo

Millions more migrant workers, means countries lose ‘most productive part’ of workforce

Girls groomed for suicide missions fight back against the extremists of Lake Chad

India’s economy is an ‘elephant that is starting to run’, according to the IMF

The right approach to addressing overcapacity problem from a Chinese perspective

Berlin favours economic and social disintegration in certain Eurozone countries

EU Commission spends billions without achieving targets

“Prevention is better than cure”: the main goal of modern medicine

More than 90% of the world’s children are breathing toxic air

Infrastructure around the world is failing. Here’s how to make it more resilient

Commission launches new tool to support digital teaching and learning in schools

Big world banks to pay $ 4.95bn for cheating customers; Is it a punishment or a gentle caress?

More Stings?

Trackbacks

  1. […] Greece begins a new chapter following the conclusion of its stability support programme  The European Sting […]

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