Addressing the Vouli, the Greek single-chamber parliament, on Friday 9 February, Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, recommended an exit from the third bailout plan based around three pillars.
First of all, Moscovici reiterates that he wants Greece to be fully “sovereign, prosperous and European” following the conclusion of the third bailout plan, which is expected to take place in August of this year (see EUROPE 11942). “There must be no fourth programme for Greece”, he told the Greek MPs.
Despite the forthcoming end of the financial assistance programme, he considers that there are three pillars which should apply both to Greece and its European partners.
He hopes is calling for “normal post-programme monitoring”. This should be along the lines of that experienced by Portugal, Cyprus and Ireland, to accompany the Hellenic authorities in their economic actions.
As well as maintaining the primary budgetary surplus (not including servicing of the debt) at 3.5% of GDP until 2020 and at an average of 2% of GDP until 2060 (see EUROPE 11807), Moscovici believes that Athens should define commitments and a growth strategy that it would be required to comply with.
Finally, the ministers of finance and the institutions of the EU should set in place a package of measures to reduce the weight of Greek debt. With regard to this, the Commissioner said that the French proposal to adjust the reimbursement level of the Greek debt in line with economic growth in Greece (growth-adjustment mechanism) was “interesting” (see EUROPE 11944) and he hopes that measures will be taken on the basis of it. (Original version in French by Lucas Tripoteau)