Greece’s efforts to unlock negotiations on the bailout program review have failed as euro zone finance ministers on Thursday did not set a date for creditors‘ representatives to return to Athens and resume negotiations.
Furthermore, during the Eurogroup Greek Finance Minister Euclid Tsakalotos received pressure to commit for additional fiscal measures beyond 2018, when the bailout program ends.
In the press conference that followed, Eurogroup President Jeroen Dijsselbloem underlined that it is for the benefit of all to expedite the completion of the second review of the bailout program. He called on Greece to move faster so that creditors’ representatives return to Athens as soon as possible and resume negotiations.
However, the Eurogroup president stated that more measures are necessary for 2019, in order for Greece to achieve its targets. “We ask from Greece to implement reforms in security funds, labor market and pension system,” he said.
Furthermore, Dijsselbloem said that the International Monetary Fund will remain in Greece’s bailout program and there is no other way.
Commissioner on financial affairs Pierre Moscovici noted that “no one wants to return to the past,” meaning talks on the first program review that took several months. “We can succeed if we all make an effort,” he said, adding that “we are not far away.” Moscovici also said he hopes creditors’ representatives return to Athens soon to resume negotiations.
European Stability Mechanism President Klaus Regling talked about the short-term measures for Greek debt easing and reiterated the position that Greece must implement the bailout program in full and that includes the completion of the second evaluation.
Eurogroup’s full statement on Greece
“The institutions briefed the Eurogroup on the second review of the economic adjustment programme, following their review mission to Athens in December.
The Eurogroup urged the Greek authorities and the institutions to swiftly resume negotiations to agree on a policy reform package shared by all stakeholders. Such an agreement is a condition for the successful conclusion of the second review.
The reforms concern Greece’s labour and product markets, its energy sector and other areas. An agreement on Greece’s medium-term fiscal strategy, i.e. in 2018 and beyond, is also expected.
The European Stability Mechanism (ESM), which is providing the financing for the programme, informed ministers about progress made in implementing the short-term debt relief measures for Greece. These measures were endorsed by the Eurogroup in December and formally adopted by the ESM and EFSF (European Financial Stability Facility) boards of directors on 23 January 2017.
The measures aim to reduce interest rate risk for Greece, including by changing some debt rates from floating to fixed, and to make the burden of debt repayment easier. They do not have any budgetary implications for the ESM shareholders, which are the euro area member states.”
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
