European Commission blocks 1bn-euro instalment to Greece

28 February 2019
455 Views

The European Commission blocked the disbursement of the 1-million-euro tranche to Greece after it was determined that the country had not met the agreed requirements to receive the money.

“Concerning #Greece, the second enhanced surveillance report published today shows significant progress but also some areas in which further efforts are needed, and I urge the authorities to complete these in time for the next #Eurogroup”, European Commissioner for Economic and Financial Affairs Pierre Moscovici tweeted.

The Commissioner on Wednesday said that the second enhanced surveillance report on Greece released earlier the same day showed significant progress but also some areas in which further efforts were needed, urging Greek authorities to complete these in time for the next Eurogroup on March 11.
He noted that Greece has made a significant step towards normality as it is fully included in the European Semester for the “first time” since exiting the programme.
He explained that the excessive imbalances observed are equivalent to those faced by other countries that have exited programmes, such as Cyprus and Portugal, and are indicative of the size of challenges that the Greek economy is still up against. Moscovici referred specifically to high unemployment and debt, saying that “this is something that should not surprise us.”
On the second report, he noted that “most of Greece’s commitments” have been met, including the 2019 State Budget that foresees a 3.5 pct primary surplus target, the completion of major tenders in the field of natural gas, in health and in the International Airport, the reforms in investments and the changes in the judicial system.
However, he referred to two “main outstanding issues,” which are the extension of the primary residence protection schemes and the sale of the Public Power Corporation (PPC) lignite plants, saying that it would be in Greece’s interest to complete these reforms before the Eurogroup in March.
According to Moscovici, this is the message he will convey to the Greek authorities when he visits Athens on Thursday.
As excerpts of the report noted:

Ensuring the sustainability of government debt in the medium and long term will require maintaining fiscal discipline and continuing and completing the fiscal structural reforms initiated in recent years. It will involve full implementation of the 2016 pension reform and completion of the health care reforms. Furthermore, it will include modernisation of the property tax system and usage of emerging fiscal space to shift towards a more growth-friendly tax
structure, and further improving tax collection, by enhanced operational independence of the tax authority. Finally, it will address arrears, further improvement of public financial management, and continuation of improving the management of State assets.
The report also points out that Greece’s net international investment position remains highly negative.

You may be interested

Mitsotakis-Erdogan phone call after the 6.7 Richter earthquake
POLITICS
shares36 views
POLITICS
shares36 views

Mitsotakis-Erdogan phone call after the 6.7 Richter earthquake

makis - Oct 30, 2020

Greek Prime Minister Kyriakos Mitsotakis had a telephone conversation with Turkish President Recep Tayyip Erdogan in the aftermath of the…

Nice Muslim terrorist arrived in France from Lampedusa – Watch the moment of his arrest (video)
SLIDE
shares43 views
SLIDE
shares43 views

Nice Muslim terrorist arrived in France from Lampedusa – Watch the moment of his arrest (video)

makis - Oct 29, 2020

A Tunisian man who arrived in Europe with a group of migrants rescued off the coast of Lampedusa in Italy…

Two Greek hotels win TUI top awards
GREECE
shares39 views
GREECE
shares39 views

Two Greek hotels win TUI top awards

Panos - Oct 29, 2020

Two Greek hotels are among the 16 winners of the TUI Global Hotel Awards, a great distinction that boosts the international visibility of the…

Leave a Comment

Your email address will not be published.