Eurozone finance ministers will be briefed on the ECB’s recent decision to raise key interest rates to tackle high inflation.
The positive for Greece 14th report of enhanced supervision will welcome the Eurogroupwhich is meeting today in Luxembourg, and its approval is expected penultimate tranche of EUR 748 millionfor the relief of the public debt of Greece.
According to a European official, at the end of August Greece is expected to see the end of the close macroeconomic monitoring process imposed on it in August 2018. “Greece has come an incredibly long way in the last 12 years and is now on a sustainable path. This is the result of many years of effort and determination and it is worth acknowledging. “stressed the European official and added: “The end of enhanced supervision will be another milestone for Greece to complete its path to European normalcy».
The same official said that towards the end of the summer, the Commission is expected to say that there is no reason to extend the enhanced surveillance regime for Greece and to announce the end of the procedure in August.
«This is an important moment, although the end of enhanced supervision does not mean that the work is fully completed.“, The official noted, saying that The Greek authorities are committed to pursuing a stable and prudent fiscal policy, will continue the reform efforts, while also committing to implement the remaining outstanding issues in the second half of the year. The same official explained that Greece ‘s political commitments will be monitored in the context of regular post – program monitoring and in the context of the European Semester.
Concerning in the final installment of the debt measuresthe European official said that he will be evaluated in the context of the first post-program report in November.
«I expect the Eurogroup to be very supportive of the disbursement of the installments related to the debt relief measures and for the regular supervision of Greece “he added, noting that this would be reflected in a Eurogroup statement.
In addition, eurozone finance ministers will be briefed on the latest decision of the European Central Bank (ECB) to gradually increase its key interest rates, in order to tackle high inflation. However, the Eurogroup is not expected to face the recent rise in interest rates on long-term government bonds of eurozone countries today.
It is noted that the Minister of Finance is also in Luxembourg Christos Staikourasto participate today and tomorrow in the meetings of the Eurogroup and Ecofin, as well as in the annual meetings of the Boards of Governors of the European Stability Mechanism (ESM) and the European Investment Bank (EIB).
Towards an agreement for the new head of the ESM
Finally, the members of its board of directors European Stability Mechanism (ESM), will try to reach an agreement on the successor of Klaus Regling as head of the ESM. The new candidate is expected to take office in October.
There are three candidates for the ESM leadership: the former Luxembourg finance minister, Pierre Gramenia64 years old, the former Minister of Finance of Portugal, Hoao Leao48 years old and the 65-year-old Italian Marco Bouti, Head of the Office of the Commissioner for Economy, Paolo Gentiloni. In the last ballot in May, the Italian candidate, Marco Bouti, is said to have received the fewest votes.
To be nominated for a new CEO of the ESM, he / she must receive more than 80% of the votes on the ESM Board of Directors. Each eurozone country has a weighted vote according to its share of the bailout fund.
