The new programme for Greece has a “good chance” of succeeding, the European Commission’s head of mission for Greece Declan Costello said, on Tuesday. Costello made the statement while attending an event on the Greek programme at the Centre for European Policy Studies (CEPS) think tank in Brussels, also attended by former minister Nikos Christodoulakis.
According to Costello, the third programme for Greece was more likely to work because it was largely front loaded. This means that nearly 60 pct of the fiscal adjustment had already been passed into law, while more than 50 pct of the programme funds were available to Greece in the first six months of its implementation, he said.
He also noted that Greece’s partners have pledged to start discussing a restructuring of the country’s debt after the successful conclusion of the first review, while the discussion now underway was on the scale of this restructuring and when it will take place.
Christodoulakis noted that the main problem faced by Greece was a reduction in investment, while he estimated that roughly 107 billion euros in investments must be made over the next six years. He said this amount could feasibly come to the country through a return of deposit, as well as from privatisations and financing from EU structural funds.