Eurogroup to Discuss Greek Program at Milan Meeting

greeceThe Eurogroup meeting to be held on Friday in Milan will discuss the progress in the implementation of the Greek program following the Paris discussions. It takes place ahead of the Troika’s arrival in Greece, later in September, a senior Eurozone official said on Monday.

Regarding debt sustainability, the official underlined that this issue is part of the discussions with the Greek authorities in the ongoing evaluation.

He added, however, that the substantive negotiations will take place after the completion of the review.

He stated that the debt sustainability analysis is also related to the 2015 budget figures, which are the deficit, revenues and spending.

For this reason, he said, it is the member states’ obligation to submit their 2015 draft budgets to the European Commission by mid-October, which will then be evaluated by the Commission at the end of November.

When asked what will follow the completion of the Greek program, the official said that it is essentially a matter of the Greek authorities. If requested, the current second program can be extended or a third program may be implemented. However, if the Greek authorities consider there is no need for a new program, the country will have to turn to the markets for funding, he added.