20 November 2013

Statement by the European Commission, ECB and IMF 
on the review mission to Greece

Staff teams of the Commission, the ECB and the IMF have concluded their visit to Greece, following productive discussions with the authorities on the set of policies that could serve as a basis for the completion of the ongoing review of the country's economic programme.

Good progress has been made, but a few issues remain outstanding. The discussions will continue from respective headquarters. The EC/ECB/IMF staff teams expect to return to Athens in early December.

Press release

---

Kathimerini reports that another round of talks between the troika and Greek government officials failed to yield any results and, as a result, Greece is due to submit its 2014 budget to Parliament on Thursday without the final approval of its lenders.

Sources told Kathimerini that the budget will include a range of measures aimed at producing well over €1 billion in extra savings next year. Some €600 million will be saved by tidying up the social security system. Another €350 million in extra revenues is projected from improvements to tax administration. An improvement in the performance of the Greek economy, which is forecast to grow marginally next year, is due to bring in extra tax revenues of about €100 million. The shutting down of some public bodies will also produce savings, the government believes.

The fact that the troika did not sign off on the 2014 budget means that a supplementary one may have to be submitted to Parliament early next year.

Sources said that the talks with the troika were not so much focused on next year’s projected fiscal gap but more on how the two sides can reach an agreement in time for the December 9 Eurogroup.

On Friday, Prime Minister Antonis Samaras will hold talks with German Chancellor Angela Merkel in Berlin but her spokesman, Steffen Seibert, said yesterday that the two leaders would not be discussing the details of Greece’s adjustment programme. “This is not a meeting for negotiations", he said. “This is not a bilateral matter for national governments.”

Seibert, however, insisted that Berlin still believes that Greece is on the "right path" and that the "first signs of success are visible". "We have a lot of respect for the reforms and difficulties that have to be overcome in Greece, as well as the harshness many people have to go through during this process."

Further reporting © Kathimerini

© ECB - European Central Bank