Greece to be Subject to Strict Post-Bailout Surveillance



(File photo).

Greece will be subject to strict surveillance by European institutions after the end of the third bailout program in August.

According to a document seen by Greek newspaper Kathimerini, Athens will be obliged to meet fiscal targets and continue implementing economic reforms that were agreed during the rescue program.

German Chancellor Angela Merkel said she hoped Thursday’s Eurogroup would mark the “final step” before Greece’s exit from the bailout programs that started in 2010.

Speaking during a joint news conference with French President Emmanuel Macron in Germany, Merkel said Greece’s exit will be an auspicious moment for measures to be taken to fortify the eurozone given that no euro-area country will be committed to a bailout program.

On Thursday’s meeting of eurozone finance ministers Athens and creditors hope that the final tranche of loans to Greece will be disbursed, the debt relief measures will be finalized, and the two sides will agree on the supervision after the program ends.

According to the document seen by Kathimerini, Greece will have to implement legislated reforms and meet budget targets systematically, at least until 2022, in order to unlock certain debt relief measures.

Those measures will include the return of profits that eurozone central banks made on Greek state bonds and the abolition of an originally agreed increase on the interest on European Financial Stability Facility (EFSF) loans.

Regarding surveillance after the end of the program, EU representatives will be in Athens every three months to monitor if the reforms are implemented and the state of Greece’s finances.

Creditors’ reports are expected to influence the stance of international markets opposite Greece, as the Greek government aims to fund itself independently once it emerges from the bailout program.

The document sets out six policy areas that foreign officials will continue to monitor: fiscal performance and taxation, social welfare and health, the labor market, Greek banks and the high proportion of non-performing loans, privatization, and public administration.

Also, Greece’s commitment to produce promise to produce high primary surpluses will be closely monitored by the institutions.