On Thursday 24 May, the Eurogroup did not definitively decide upon the supervisory framework for the Greek economy and public finances at mid-August 2018, all the measures to relieve the Greek debt. The group has therefore agreed to meet again in Luxembourg on 21 June, to make decisions on the finalisation of the third Greek bailout plan.
This launches the final sprint to conclude the fourth and final monitoring mission, document the end of the third bailout plan and agree on debt relief measures. “There is a lot to do” in the next few months, acknowledged Pierre Moscovici, the Commissioner for Economic and Financial Affairs.
The attendees of the meeting were first of all briefed about the technical agreement concluded last Saturday between Athens and the institutions (European Commission, ECB, ESM and IMF) on the socio-economic measures which the government of Alexis Tsipras must take by 21 June to conclude the fourth monitoring mission of this final financial assistance plan (see EUROPE 12024).
“We welcome this package”, said the President of the Eurogroup, Mario Centeno, urging the Greek authorities to “keep up the pace” of reforms in the coming weeks.
The post-programme framework is also to be discussed and documented at the June meeting, particularly with regard to Greece's long-term growth strategy. The country must define the economic orientations and reforms that Athens must continue to apply.
The question on everybody's lips, however, concerned the debt measures and the participation of the IMF in a specific programme, subject to the sustainability of the Greek debt. Although the various players acknowledged that there is very little time for the Washington-based institution to come on board, no position was adopted.
The differences of opinion over the nature of the debt relief measures persist, between those in favour of the 'French mechanism' ('growth-adjustment mechanism'), aiming to index the level of debt reimbursement to the level of growth the Greek economy (see EUROPE 11944), and those which, like Germany, want the debt measures to be conditional on structural reforms.
Centeno said that the institutions had put together a viability analysis of the Greek debt, on the basis of which enlightened choices could be made.
“We have made very consistent progress”, Moscovici however considers. The aim for the various parties is in all cases to reach a credible solution, both for the member states and for the markets. The June Eurogroup meeting will therefore be critical. (Original version in French by Lucas Tripoteau)