“On Greece we have some good news. We have achieved a political agreement on the third review of the ESM (European Stability Mechanism) programme and on the size of the next tranche of €6.7 billion”, Mario Centeno, who was chairing his first meeting of the Eurogroup, announced on Monday 22 January.
The Eurozone finance ministers considered that the adoption by the Vouli, the Greek single-chamber parliament, of almost all of last week's priority measures (95 out of 110) was enough to reach a political agreement on the disbursement of this tranche of aid (see EUROPE 11942). It will be paid out in two instalments. The first, of €5.7 billion, will be paid in February, to cover the servicing of the debt, pay off arrears and constitute a liquidity buffer for Athens' return to the financial markets. The second payment which, according to ESM Director General Klaus Regling, is expected for April, will be used only to pay off debt arrears.
In particular, the Eurozone financial policymakers welcomed the adoption of the Greek budget for 2018, in line with the objective of achieving a primary budgetary surplus (not including servicing of the debt) of 3.5% of GDP.
However, the Eurogroup has called upon Athens to adopt the 15 remaining priority measures as a matter of urgency. The Eurogroup working group, which is now chaired by Hans Vijlbrief (see article), has been tasked with supervising the implementation of these measures, for instance concerning the electronic tendering system and privatisations.
The third monitoring mission of the third financial assistance programme may then be concluded. A fourth and final monitoring mission is expected to be finalised in June.
The ministers also discussed the exit strategy from the bailout plan, which will conclude in mid-August 2018, particularly the adoption of any measures necessary to relieve the Greek debt. Work is now underway at technical level on a mechanism to adjust the reimbursement level of the Greek debt to tie in with economic growth in Greece ('growth-adjustment mechanism'). (Original version in French by Lucas Tripoteau)