starts today with the Eurogroup of 19 Eurozone finance ministers who will discuss the issue on the first revision of the package of Greek economic reforms and the connected question. Greece signed an agreement with its creditors, IMF, ECB and some eurozone countries, in July last year for the third rescue package of EUR 86 billion, in exchange for unpopular reforms that include cuts in pensions and increases taxes. The two previous rescue plans, the last of which expired June 30, 2015 resulted in the coffers of Athens 270 billion dollars from its international creditors, while the additional financial assistance is subject to the results of the initial review of Greek reforms in ‘framework of the European stability mechanism (ESM), which acts as a guarantee for the provision of emergency funding for the Member States of the euro area financial difficulties. Parameters which, so far, Greece has failed to comply. The last Eurogroup meeting took place on 9 May, when eurozone ministers welcomed the Athens strategy on pension reform, the public sector, taxes and privatization, concluding that to lock the tranches of aid were further reforms needed to achieve the goal of a primary surplus of 3.5 percent of GDP. However, on Sunday, the greek parliament approved a bill that aims to satisfy the demands of creditors ahead of today’s meeting and adopted, in particular, an emergency mechanism that allows the government to cut spending further if necessary , as requested by the Eurogroup. Among the actions are part an increase of sales tax and the creation of a framework for a new privatization fund to meet the creditors’ demands to broaden the tax base of the country. Tsipras said yesterday that Greece has fulfilled its commitments. Eurogroup ministers, therefore, “should be informed by the institutions and the Greek authorities on the development of the reform package needed to complete the first review, including with regard to the emergency mechanism to ensure the achievement of the primary surplus targets agreed in the ESM program and on the status of implementation of the prior actions “, as stated in the agenda of today’s meeting.
The Eurogroup, comprendendo the 19 eurozone finance Ministers, September is to meet on Tuesday to discuss the Greek economy and issues related to the first review of the indebted country’s economic Reforms. Greece signed a deal with its Creditors, the International Monetary Fund (IMF) and the European Central Bank (ECB) and some eurozone nations, in July 2015 for a third bailout package worth 86 billion euros ($ 96 billion) in exchange for unpopular austerity Reforms That includes pension cuts and tax hikes. Under two previous bailout programs, the last of Which expired on June 30, 2015, Greece received about $ 270 billion from its international Creditors. Further financial assistance for Greece is subject to the results of the first review of the Greek Reforms under the European Stability Mechanism (ESM), which acts as a safeguard, providing emergency finance to eurozone member states facing financial difficulties. So far, Greece had failed to adhere to the terms of the ESM. The last Eurogroup meeting took place on May 9. Eurozone Ministers welcomed the Greek government’s pension system, income tax and public sector Reforms, as well as its privatization strategy. The meeting Concluded That Further Reforms were needed before the next bailout tranche could be unlocked. Ministers are Mainly focusing on the implementation of contingency Measures That would come into effect Should Greece require additional support to reach its primary surplus target of 3.5 percent of GDP. However, on Sunday, the Greek Parliament approved a bill aiming to Satisfy creditor demands ahead of the meeting on Tuesday. Greek lawmakers ADOPTED in contingency mechanism That Allows the government to slash spending if needed Further, as demanded by the Eurogroup. The bill Also increased At the sales tax cap, thus satisfying creditor demands to broaden the country’s tax base, as well as providing for the creation of a framework for a new privatization fund. All coalition government parliamentarians reportedly Voted in favor of the bill, passing the legislation by a narrow Majority. Eurogroup Ministers “are expected to be informed by the institutions and the Greek Authorities on the finalization of the package of Reforms required to complete the first review, including on the contingency mechanism to secure the achievement of the agreed primary surplus targets of the ESM program as well as on the state of implementation of prior actions, “reads the meeting’s agenda. The Syriza-led Greek government hopes for the review to be completed and for the Greek economy to reverse its downward trend Following the third bailout. Last week, Prime Minister Alexis Tsipras Said That he Expects Greece’s eurozone lenders to complete the review of the country’s Reforms next week with a view to Resumed economic growth later in 2016. On Monday, Tsipras reportedly Stated That Greece has fulfilled its commitments under the deal , adding That the admittedly painful austerity measures may paying off in the end.
No comments:
Post a Comment