“Greece is no longer the” black sheep “of Europe. But a reliable partner. “A state that does not accept suggestions, but co-shapes developments,” said the prime minister, among other things.
Greece and the Greeks today welcome an important national success: with the seal of the Eurogroup, our economy is now liberated from the regime of Enhanced Supervision, thus closing a painful cycle that opened 12 years ago. And, at the same time, opens a new era of autonomous choices for the development of the country and the well-being of its citizens, he stated the Prime Minister Kyriakos Mitsotakis for the exit of Greece from the Enhanced Supervision regime.
The following is the full statement of the Prime Minister:
Greece and the Greeks are welcoming, today, an important national success: with the seal of the Eurogroup, our economy is now liberated from the regime of Enhanced Supervision. This closes a painful cycle that began 12 years ago. And, at the same time, opens a new era of autonomous choices for the development of the country and the well-being of its citizens.
Thus, after the lifting of capital restrictions and the repayment of IMF loans, the third goal set by the government from the beginning is achieved: the recovery of the investment level that unlocks even more opportunities for prosperity for all. And all this while, for the past three years, the helm of the place has remained stable, despite the constant external crises and the repeated challenges.
This development is accompanied by the latest Eurobarometer data, according to which citizens now trust more European and national institutions. An answer to populism. Which proves that, along with financial strength, the State is also regaining popular acceptance, which has been so shaken by the trials of all previous years.
Greece is no longer the “black sheep” of Europe. But a reliable partner. A state that does not accept suggestions, but co-shapes developments. Who is not wronged, but leads. Looking at the development of the economy and thinking about the relief of society. Turning daily steps forward into a big leap into the future. For the Greece we deserve.
Christos Staikouras: Greece returns to European normalcy
“Greece returns to European normalcy and ceases to be an exception in the eurozone” he stated the Minister of Finance Christos Staikouras.
The following is the full statement of Mr. Staikouras:
“Today is a historic day for Greece. A great national goal is being achieved. Greece is set to leave the Enhanced Surveillance regime this summer.
It closes, thus, together with the early repayment of loans from the International Monetary Fund and the lifting of capital restrictions, a difficult chapter for Greece.
A chapter that opened in 2010. Greece returns. Greece returns to European normalcy and ceases to be an exception in the Eurozone.
Today’s decision of the Eurogroup recognizes the great sacrifices of Greek society, but also the reform agenda in the field of economy of the current Government.
Despite the great, multiple, external crises, the significant uncertainties and the new challenges, worldwide, we, the citizens and the state, have proved that we can do it. Greece is developing, upgrading, strengthening! We look forward with dynamism and confidence! “
Government sources said: “We are coming out of enhanced surveillance. Titles end in the time of crisis after 12 years. As stated in the relevant decision, “conditions of normalcy are restored in Greece for the first time since 2010”. So now we got rid of the memoranda “
See the official announcement of the Eurogroup:
“The European Commission is not expected to extend enhanced supervision until it expires on August 20, 2022,” the Eurogroup said in a statement on Greece.
“The possible expiration of enhanced supervision, the implementation of reform commitments, the full repayment of IMF loans and the early lifting of capital restrictions will close a period of challenges from 2010 marked by an increased international focus on Greek comprehensive economic policies and the return of Greece to the regular framework of economic supervision “, states the statement of the Eurogroup.
“This means that the monitoring of the economic, fiscal and financial situation of Greece will continue both in the context of the established post-program supervision and in the context of the European Semester. The European Stability Mechanism (ESM) will continue to monitor Greece’s repayment capacity under the early warning system, in accordance with existing regulations. In addition, significant reforms and investments will also continue to be monitored in the context of the implementation of Greece’s recovery and resilience plan, “the Eurogroup statement said.
It is recalled that after the successful completion of the ESM program for Greece in 2018, the Greek authorities pledged to continue and complete all the key reforms adopted under the ESM program and to ensure that the objectives of the major reforms adopted are met. The Eurogroup welcomed this commitment as well as the European Commission ‘s intention to activate enhanced supervision, in accordance with Articles 2 and 3 of Regulation (EU) No 182/2011. 472/2013. The Eurogroup has agreed that the quarterly surveillance reports will serve as a basis for the Eurogroup to agree on the repayment of SMP-ANFA equivalent income amounts and the cancellation of the European Financial Stability Facility (EFSF) increased interest rate margin.
Today, the Eurogroup discussed Greece ‘s progress in implementing reforms and its macroeconomic prospects, based on the European Commission’ s 14th enhanced monitoring report published on 23 May 2022.
Following a strong recovery in economic activity in 2021, the Commission’s spring forecast shows that the post-pandemic recovery will continue, albeit at a slightly slower pace than expected, due to the effects of the Russian military offensive against Ukraine and its higher prices. energy. Growth is expected to be driven mainly by investment and to a lesser extent by consumption and net exports. Growth is also boosted by the Recovery and Resilience Mechanism (RRF) and an overall supportive fiscal policy this year.
The Eurogroup welcomes the further policy reforms that have been achieved since the publication of the last report on 23 February 2022. In particular, we welcome the fulfillment of the specific commitments in the areas of public finances, real estate taxation, disability benefits and environmental benefits. and the agreement to extend the mandate of the Hellenic Financial Stability Fund. In addition, Greece has completed broader structural reforms, including public procurement, and the establishment of a Statistical Justice Department at the Ministry of Justice.
In this context, the Eurogroup welcomes the assessment of the European institutions that, despite the economic impact of the new pandemic waves and the new challenges posed by the Russian military offensive against Ukraine, Greece has taken the necessary measures to fulfill its specific commitments and the necessary conditions are in place to confirm the release of the seventh installment of debt relief measures. Subject to the completion of the national procedures, the Eurogroup Working Group (EWG) and the Governing Council of the European Financial Stability Facility (EFSF) are expected to approve the transfer of SMP-ANFA equivalent income amounts and the reduction of the incremental EFSF loans totaling € 748 million.
The continuing uncertainty surrounding the pandemic as well as the global instability created by the war in Ukraine underscore the need to continue to address decisively the existing medium-term risks and challenges identified in the 14th loans, unemployment and growth potential.
“Therefore, we welcome the commitment of the Greek authorities to continue the reform process and complete the outstanding issues,” the Eurogroup said.
Finally, the Eurogroup welcomes the Commission’s assessment that the successful implementation of most of the policy commitments and the effective implementation of the reforms have improved the resilience of the Greek economy and strengthened its financial stability, thus significantly reducing the risks of adverse secondary effects. members of the euro area.
The … pre-announcement by Gentiloni
“The European Commission will propose today the end of enhanced surveillance of the Greek economy,” said Economy Commissioner Paolo Gentiloni, speaking at a Eurogroup meeting in Luxembourg.
“This is an important step for Greece,” Gentiloni stressed. “If our proposal is approved, as I think it will be, it will be an important step in the right direction,” he said.
The Eurogroup will also look at macroeconomic developments in the Eurozone.
“Our economy is sailing in turbulent waters,” Gentiloni said, adding that this did not mean that the economic downturn could not be avoided, but that fiscal policies should focus on reforms, investment and a “prudent policy”. , especially for countries with high levels of public debt.
Asked if he was worried about the yields on several government bonds, Paolo Gentiloni said he was “under surveillance”. He expressed the belief that the initiative taken by the European Central Bank in order to prevent the fragmentation of the bond market, is reassuring for the markets. Eurozone finance ministers will be briefed today on the ECB’s decisions by its president, Christine Lagarde.
Finally, Paolo Gentiloni said about the conditions in the bond market, that monetary policy alone can not deal with this situation. “We also need a strong show of unity, ambition from governments and the coordination of our fiscal policy. We will discuss this today “, he added.
