On Wednesday 20 February, the European Commission agreed an extension of six months to the enhanced macroeconomic surveillance framework open to the Hellenic Republic since the end of the third Greek rescue package.
This decision is in line with the conclusions of the June 2018 Eurogroup meeting, which noted the end of financial assistance to Athens eight years ago (see EUROPE 12046, 12077).
If this enhanced surveillance had been legally decided for a period of six months on a renewable basis, it is in practice intended that the framework would apply to the Greek authorities until 2022. In more specific terms, this enhanced surveillance requires institutional creditors in Athens to meet each quarter and review the implementation of structural reforms and Greece's compliance with budgetary commitments, such as a primary surplus (excluding public debt service) of 3.5% of Greek GDP.
The first report, published in November, stated a satisfactory budgetary situation (see EUROPE 12142). However, Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, noted last month in Athens that efforts on the reform front must be intensified, particularly regarding social security reform or increasing the minimum wage (see EUROPE 12174).
The second report under the enhanced supervisory framework will be published on 27 February. (Original version in French by Lucas Tripoteau)