On Thursday 24 February, the European Commission gave a positive opinion on the measures that Greece has taken to meet its budgetary, financial and reform commitments under the close monitoring process initiated after the finalisation of the latest Greek rescue package.
Despite the difficult circumstances arising from the Covid-19 pandemic, the Greek authorities have delivered on their commitments to “strengthening the efficiency of the public administration, completing the administrative reorganisation of the Single Pension Fund and simplifying investment authorisations” in sectors such as shipping, aquaculture, tourism and healthcare.
The government announced its intention to increase the minimum wage in May.
At 15% in September 2021, the level of non-performing bank loans remains the highest in the euro area.
On the fiscal side, the primary deficit (excluding debt service) should be reduced from 7.6% in 2021 to 1.2% in 2022. The debt, which remains sustainable in the medium term, should fall from 202.5% in 2021 to 195.9% of GDP in 2022.
Following the ECB’s announcement at the end of 2021 of the completion of the ‘PEPP’ operation for the massive repurchase of mainly government securities, the Commission has observed a recovery in Greek debt securities, even if they remain below the average levels reached before the pandemic.
See the Commission’s report: https://aeur.eu/f/hb (Original version in French by Mathieu Bion)