The European Commission is of the opinion that Greece should no longer be subject, as of August this year, to the in-depth fiscal surveillance put in place in August 2018 at the time of the exit from the 3rd Greek bailout (see EUROPE 12046/1).
“On the basis of our assessment, and also on the successful delivery (of reforms) by Greece, I think the European Commission will not prolonge this enhanced surveillance after August”, said EU Economy Commissioner Paolo Gentiloni on Monday 23 May, as part of the ‘European Semester’ budget process.
After the summer, Greece should be monitored regularly in the same way as other euro area countries that have been subject to Eurozone financial supervision. Its primary budget surplus target (excluding debt service) will be reduced from 3.5% to 2.2% of Greek GDP until 2060.
According to the Greek convergence programme submitted to the European Commission at the end of April, this primary budget surplus should reach 2.0% of GDP in 2022 and 1.1% in 2023, figures in line with the projections of the EU institution.
On the same day, the European Commission presented its 14th monitoring report on the macroeconomic situation in Greece, which stated that Athens had acted in accordance with the commitments made on fiscal policy and structural reforms. In particular, the reform of the ENFIA property tax has been finalised.
According to the Vice-President of the European Commission, this report is likely to pave the way for the payment of a final aid instalment of €748 million by the end of 2022, which will alleviate the servicing of the Greek public debt.
Such a decision is expected to be taken by the Eurogroup in mid-June in Luxembourg and will be conditional on the finalisation of measures that are already planned. These measures include the end of arrears in pension payments and the acquisition of 40% of hospital medicines through group purchases.
See the report: https://aeur.eu/f/1se (Original version in French by Mathieu Bion)