The Commission recommends to the Eurogroup to give the “green light” for the release of the last tranche of debt relief measures, amounting to 644 million euros
The reduction of the cost of servicing Greece’s public debt, by approximately 6 billion euros, is expected to be approved today by the Eurogroup meeting in Brussels.
Based on the positive evaluation of Greece’s 1st post-programmatic monitoring report, the European Commission recommends to the Eurogroup to give the “green light” for the release of the last tranche of debt relief measures, amounting to 644 million euros. This amount results from the profits of the Greek government bonds retained by the European central banks (SMPs, ANFAs).
At the same time, the Commission proposes the permanent zeroing of the interest rate margin on loans of the European Financial Stability Fund (EFSF) granted in 2012 and to be repaid in 2049, amounting to EUR 5.2 billion, as well as the exemption from the interest rate increase margin for certain loans granted in the second half of 2022 by the EFSF, amounting to 123 million euros.
Besides, today the Finance Ministers of the Eurozone are expected to renew the term of the president of the Eurogroup, Pascal Donahue, for two and a half additional years. The Irish Finance Minister was the only candidate for the post of Eurogroup president and his second term starts in January 2023.
In addition, the Eurogroup will discuss the Commission’s proposal to reform the European economic governance framework.
The Commission proposes to the member states the introduction of a criterion for public spending that will put the public debt on a downward trajectory. The pace of debt reduction will vary from country to country, as more time will be made available in exchange for specific commitments to reform and investment. At the same time, however, financial sanctions are foreseen if the member states do not take effective measures to correct their excessive deficit. If the Commission’s proposals are approved by the member states, it will submit a specific legislative proposal in the first quarter of 2023.
The Eurogroup will discuss the national budget plans of the euro area countries for 2023 and make recommendations, bearing in mind that the general escape clause of the Stability and Growth Pact will remain active until the end of 2023.
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