Valdis Dobrovskis: Greece exits enhanced supervision in August

Greece is well on its way out of the regime of enhanced supervision, stressed the Vice President of the European Commission and Trade Commissioner Valdis Dobrovskis, after the tele-meeting he had with the Minister of Finance Christos Staikouras.

The European Commissioner stressed that Greece has made progress and discussions are ongoing, everything will depend on the evaluation and consultations that will take place in June.

Regarding the two remaining installments totaling 1.5 billion euros, their disbursement to the country will be made in two installments.

🆕Executive Vice-President @VDombrovskis announces the disbursement of a first payment of €3.6 billion to 🇬🇷 Greece under the Recovery and Resilience Facility during a visit to the country.

Greece has achieved 15 milestones of its RRF plan. 👏#NextGenEU #NextGenerationEU pic.twitter.com/gPS2mS5fjW

— EU Economy & Finance (@ecfin) April 8, 2022

“Despite the hard blow, the Greek economy regained its pre-pandemic GDP level as early as 2021. The government provided timely support to protect incomes, jobs, and businesses. However, the COVID-19 crisis has added to the existing budgetary challenges. Deficits and debts increased in all EU Member States, including Greece. Therefore, the reduction of the high public debt should remain high on the agenda,” he stressed, among other things, and added:

“It is important that Greece never falters in its reform efforts, sending a strong message of unwavering commitment to strengthening its economic and social resilience. The Greek authorities have completed a series of important reforms for the modernization of the public administration, the strengthening of the insolvency system and the reorganization of the pension administration.”

“After a long and painful period of adjustment, despite the ever-changing international environment, the Greek economy not only proved resilient to strong shocks, but also showed a remarkable growth dynamic. It has endured, adapted, upgraded, improved and strengthened, in the vortex of an unprecedented global health crisis. It thus laid a solid foundation for strong, sustainable and sustainable development “, said for his part the Minister of Finance during the online joint press conference with the Executive Vice President of the European Commission and added:” The above are not theoretical estimates, but tangible, measurable results, recognized internationally by partners, markets and rating agencies. They are reflected in the successful completion of 10 evaluations by the current Government, while the 14th evaluation in the context of the enhanced supervision of the country is in progress, in the last year of the mechanism decided in 2018 “.

Greece has never faltered in its reform efforts, despite Covid & now war in 🇺🇦

I have every confidence that Greece will keep up the reform momentum.

This will be the basis to transit out of Enhanced Surveillance this summer.

Press point w @cstaikouras https://t.co/QtzatjoPKK

— Valdis Dombrovskis (@VDombrovskis) April 8, 2022

Read the entire position of the Minister of Finance Mr. Christos Staikouras

Dear Mr. Valdis Dombrovskis,
It is with great pleasure that I welcome you to the Ministry of Finance.
I take this opportunity to express my gratitude for the sincere, productive and mutually beneficial cooperation we have developed over the years.

Dear Ms. Vice President,
Our meeting today takes place in a sensitive, I would say critical period for Europe and Greece. A period characterized by strong turmoil, successive crises, high uncertainty and great challenges.
However, today, just a few days after the early repayment of the International Monetary Fund, a move that closes a painful chapter in the history of our country, Greece took another step forward.
A symbolic step of the progress that our country has steadily and methodically recorded in recent years, in spite of the times and circumstances.

Today, Greece received the first resources – after the significant down payment – from the Recovery and Resilience Fund, with the disbursement of the installment of 3.6 billion euros.
Resources that can be a bulwark against the effects of the crisis, but also to feed the country’s development mechanism. Resources directed to strategic areas, such as the green and digital transition, will mobilize significant private investment, and support small and medium-sized enterprises.

Resources that contribute to the change of model in the Greek economy, towards a more extroverted and competitive model. Already, 173 projects have been approved for inclusion in the Greek Recovery and Sustainability Plan, with a total budget of 8.5 billion euros.

Let’s move on!

We are moving forward at a fast and decisive pace.

These funds are the fruit of Europe’s united, solid response to a common threat, they are an important opportunity, but at the same time a clear demonstration of the strength and stature that the great European family can stand. This power particularly critical, especially in this time of war that Europe is experiencing, in the wake of the Russian invasion of Ukraine.

Dear Mr. Vice President,

After a long and painful period of adjustment, despite the ever-changing current international environment, the Greek economy not only proved resilient to strong shocks, but also showed a remarkable growth dynamic. It has endured, adapted, upgraded, improved and strengthened, in the vortex of an unprecedented global health crisis.

It thus laid a solid foundation for strong, sustainable and sustainable development. The above are not theoretical estimates, but tangible, measurable results, recognized internationally by partners, markets and rating agencies. They are reflected in the successful completion of 10 evaluations by the current Government, while the 14th evaluation is underway in the context of enhanced supervision of the country, in the last year of the mechanism decided in 2018. The relevant discussions are progressing well.

However, a number of economic indicators are also reflected, such as the strong recovery of 2021, the significant decline in unemployment, the large increase in investment and exports, the increase in business turnover, the increase in deposits, and the decrease in non-profit serviced loans in bank portfolios.
They stand out in the increase of investments for research and technology and of the products of high added value in the Greek production, as well as in the strengthening of the exports.
These positive developments are the result of the responsible, modern, reformist and dynamic economic policy that, consistently and consistently, the Greek Government implements, through a sound and prudent financial management and a far-sighted publishing strategy.

Of course, the new, acute international crisis affecting Europe is overshadowing these results and undermining the positive outlook. On the supply side, it inflates prices, “gnaws” on disposable income, limits turnover, “slows down” growth dynamics.

No European Member State can afford it alone, nor can it cover the costs involved. That is why coordinated, immediate, bold European action is needed to tackle, effectively and in solidarity, the consequences of the crisis, but above all the crisis itself.

The Greek Government, with specific proposals, actively contributes to the search for optimal solutions at European level.

Solutions for:

• tackling the energy crisis by reducing distortions and speculative pressures,
• the completion of the banking union,
• promoting the union of capital markets,
• the conclusion of the international agreement on taxation,
• the new fiscal rules. Rules that should ensure the long-term sustainability of public finances, but also the smooth fiscal adjustment after the shock of the pandemic. Rules that should provide maximum flexibility in dealing with crises, protecting and encouraging public investment, transparency in the design and implementation of any changes.

We support rules that strengthen the national ownership of fiscal adjustment plans, as part of a medium-term approach.

We also support the creation of permanent fiscal mechanisms at Union level.

And we advocate symmetrical treatment of positive and negative current account balances, as necessary to strengthen the Union ‘s real convergence and resilience, including medium – term fiscal sustainability.

Especially in the current circumstances, the design of our fiscal rules should take into account the identified need to increase defense spending. In closing, I want to emphasize that Greece is working hard and systematically to overcome any difficulties. It has proven that it can cope, in the best way, with the challenges of the time. However, the current situation is historic. The challenges that lie ahead of us require European, far-sighted, dynamic, decisive and coherent solutions. Solutions for the present, but also for the future of Europe, which will incorporate the lessons of the recent past.

They will prove that the European institutions and partners recognize the needs of the times and respond to them, with quick reflexes, guided by our fundamental principles and values ​​and our common goal of democracy, development, social cohesion and prosperity.