Brussels, 08/07/2013 (Agence Europe) - Greece has reached agreement with representatives of its troika of lenders (European Commission, European Central Bank and International Monetary Fund) on economic and financial measures to be taken to keep the Greek programme on track, and the Eurogroup meeting on Monday 8 July will therefore decide on disbursement of the next batch of aid to the country.
Upon arrival in Brussels on Monday 8 July, the head of the Eurogroup, Jeroen Dijsselbloem, said: “I understand there is a staff-level agreement and on the basis of that we'll see if an instalment could be made soon and what the size it would be”. Asked whether the aid would be divided into a number of instalments, he said: “The possibility is always there. Whether it is necessary or helpful we'll see on the basis of what the troika will present to us”.
French Economy Minister Pierre Moscovici said a political decision had to be taken about payment of aid by the end of July if the troika report went in that direction.
The two most recent batches of aid to Greece were made in a number of sub-batches, explained Euro Commissioner Olli Rehn, whose spokesperson described the figures circulating in the press of €3.1 billion, €1.8 billion of it from the IMF, as “wrong”.
In a press release, the troika says the Greek programme “is on track to achieve its objectives” although “the outlook remains uncertain”.
Greece's lenders say that: “While important progress continues to be made, policy implementation is behind in some areas. The authorities have committed to take corrective actions to ensure delivery of the fiscal targets for 2013-14 and achieve primary balance this year. These actions include concrete steps to gain control over health sector overspending (Ed: €2 billion). The income tax, property tax, and tax procedure codes are being reformed, and the autonomy and efficiency of revenue administration is being strengthened”. “The staff-level agreement does not assume a temporary reduction in the VAT rate on restaurants and catering, but this issue of importance to the authorities will continue to be discussed with staff of the EC, ECB and IMF”.
A sticking point in the negotiations was the slimming down of the public sector. “The authorities have committed to take steps to bring public administration reforms back on track, such as by completing staffing plans by end-year, placing staff in the mobility and reallocation scheme, and meeting the agreed targets for mandatory exits”, explains the troika. French newspaper Les Echos says that 4,000 redundancies and 25,000 transfers are on the cards.
Reform of Greek banks is under way and two bridge banks are due to be sold off. “These reforms are a further important step towards facilitating adjustment and enabling growth”, says the troika, mentioning “targeted employment and training programmes supported by the EU and a programme to provide access to primary health care for the uninsured”.
The measures now need to be endorsed by the Greek parliament, said Greek newspaper Ekathimerini on Tuesday. The government has a weak majority now that Centre-Left party Dimar has left the coalition. (MB/transl.fl)