The Eurogroup discussed the state of play of the first review of Greece’s macroeconomic adjustment programme.
It welcomed a package of policy reforms, which will cover:
- the pension system
- income tax and VAT
- public sector wage bill measures
- privatisation strategy
- the issue of non-performing loans
The Eurogroup concluded that further work was needed by the Greek authorities and the institutions on a mechanism concerning additional contingency measures. These measures will come into force only if additional effort is needed to reach the agreed primary surplus targets.
The conclusion of the first review will pave the way for the disbursement of further financial assistance for Greece, following the implementation of prior actions by Greece and the relevant national procedures in the other euro area member states.
The Eurogroup reaffirmed its readiness to consider, upon conclusion of the first review, if necessary, possible additional measures to ensure the sustainability of Greece’s refinancing needs. In this regard it agreed on a number of general guiding principles and a sequenced approach, and tasked the Eurogroup Working Group with working on further details.
The Eurogroup will continue the discussion at its next meeting on 24 May 2016.