European Commission report cautions on primary residence and public sector hirings

3 April 2019
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The European Commission released its revised report for Greece regarding the enhanced surveillance, pointing out it had made significant progress in completing its commitments following the passing of the amendment by the Greek parliament of the new framework for the protection of the primary residence.

The report effectively paved the way for the disbursement of €1 billion on the Greek bond yields at the Eurogroup later this week.

The Commission, however, sounded the alarm on a series of issues pointing out that the new housing protection framework mitigates but did not eliminate the risks to financial stability and payment discipline, and that the government should avoid creating new fiscal risks, “which could arise from court decisions, public sector recruitment, and possible changes in tax arrangements for tax and social security funds”.

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