The European Commissioner for Economic and Financial Affairs, Pierre Moscovici, called on the Greek State to implement the structural reforms as agreed in the exit agreement of the third financial assistance programme in an address to the Franco-Hellenic Chamber of Commerce and Industry on Wednesday 16 January (see EUROPE 12046).
In Athens, Mr Moscovici met with the Greek authorities, including Alexis Tsipras, the head of the Greek government who survived a motion of no confidence. This visit is not insignificant: in February, the European Commission will publish a second report under the enhanced surveillance framework for Greece in place since the completion of the third bailout programme in August 2018 (see EUROPE 12077).
To this end, technical work has begun in Athens. The head delegates from institutional creditors will be on the spot from Monday 21 January so as to report to the euro working group at the end of the month, a European source said on Thursday.
The first report, issued on 21 November last, indicated a satisfactory budgetary situation (see EUROPE 12142).
"In recent months, Greece has continued to make progress on the path to economic normalization, and the news is good", Mr Moscovici said. He referred in particular to the Greek draft budget for 2019, which forecasts a primary surplus (excluding debt service) of more than 3.5% of GDP, and to the liberalisation of the energy market.
"Nevertheless, efforts must be continued, and even intensified, on other priority issues", he added, referring to social security reform and raising the minimum wage.
The stakes of implementing the reforms are to provide Athens with an additional tranche of public debt relief, amounting to €750 million, in March. Without these measures, the promised aid will not be granted.
"The Greek government still has sixteen reforms to implement", Mr Moscovici said, identifying four priorities: - the improvement of the business environment and investment conditions; - the full recovery of the banking sector affected by bad debts; - the modernisation of public administration and the judicial system, and - social inclusion in the recovery of the economy. (Original version in French by Lucas Tripoteau with Mathieu Bion)