The European Comission announced on Wednesday that will not extend enhanced surveillance of the implementation of the reforms post rescue in Greece once your monitoring program expires on next august 20since Athens has fulfilled “most” of the commitments it made with the Eurogroup in 2018 and achieved an “effective application” of the reforms.
“As a result of Greece’s efforts, the resilience of the Greek economy has improved substantially and the risks of indirect effects on the euro area economy have decreased significantly. Therefore, keeping Greece under enhanced surveillance is no longer justified,” the Commission said in a statement.
Brussels had already advanced its decision by letter on August 2 to the Greek Government, which responded by highlighting the progress that Greece has made in recent years despite challenges such as the pandemic or the war in Ukraine, “turning a page of its modern history “.
“Normal financial situation”
“Greece has made significant progress and as a result has returned to a normal financial situation. We are prepared to continue on this path for the benefit of all our citizens and future generations, as well as the stability and prosperity of our Union,” Greek Finance Minister Christos Staikouras shared in this letter.
Brussels will continue to monitor the Greek economic situation within the framework of post-adjustment program surveillance and the European Semester, which monitors economic milestones in all Member States.
“The Commission welcomes Greece’s achievements and its commitment to continue carrying out reforms beyond the end of enhanced supervision,” Brussels said in its statement.
8 years of aid and reforms
The Eurogroup closed in June 2018 the third Greek bailout for end eight years of unprecedented aid and reform for Athensthe most visible face of the financial crisis in Europe.
During the preceding eight years, Greece undertook profound reforms in its labor system, tax, social security, pensions or public administrationcarried out privatizations, profound fiscal adjustments and a restructuring of its banking sector, with great sacrifices of its population today recognized by Europe.
This allowed it to go from recession (in 2010 its GDP fell by 5.5%) to grow by 1.4% in 2017 and from deficit (11.2%) to surplus (0.8%).
However, its GDP has fallen by 25% and the challenge of unemployment persists, which remains the highest in the EU (20.1%) and the reduction in non-performing loans.