Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

EU: Greece Heading to Implement Latest Package of Debt Relief Measures

Wed 23 Nov 2022 | 10:50 PM
Taarek Refaat

The European Union said that Greece has taken the necessary measures to fulfill its obligations in the post-bailout period, paving the way for the implementation of the last package of debt relief agreed upon for the country in 2018.

The European Union's executive arm (the European Commission) published its first report on Greece after the country's exit from enhanced surveillance mode last August.

The European Union confirmed that the Greek economy continued to recover at a strong pace in the first half of 2022, but expected it to slow in the coming quarters as a result of the energy crisis and the ensuing inflation shock.

The report also stated that Greece has kept its commitments across various areas, mainly with regard to fiscal policy, tax administration, justice, financial sector reforms and privatization.

However, more steps are needed towards fully achieving the objectives of reforming the basic health sector, regulating the labor law, in addition to settling debts and backlogs related to the efficient functioning of the financial sector.

Stressing that the document may be a basis for the European Community to decide on the release of a final package of debt measures conditioned on the implementation of certain policies, which was agreed upon in June 2018.

The EU said the measures also include a permanent reduction of the increased interest margin from 2023 until 2049, with an undiscounted value of 5.2 billion euros ($5.35 billion). The meeting of eurozone finance ministers in December will decide whether to approve the latest package of these measures.

The European Commission said that the updated analysis on debt sustainability reflects a significant improvement in the short and medium term, compared to the previous study, but without showing major changes in the long term, expecting public debt to decline to 118% of GDP in 2032.