European Commissioner for Economic Affairs Pierre Moscovici stressed that Greece needs to complete the prior actions by Monday’s Eurogroup in order to receive the 2-billion-euro subtranche of the bailout program.
Moscovici on Tuesday met with Finance Minister Euclid Tsakalotos and Deputy Finance Minister Giorgos Chouliarakis in Athens to assess the progress of the reforms required by Greece’s third bailout program.
“There are two or three issues that must be closed by Monday’s Eurogroup so that the first group of prior actions required is completed and would lead to the disbursement of the 2-billion-euro tranche. If they don’t close, the deal will not be easy, but I’m optimistic,” Moscovici said. The commissioner added that cooperation with the Greek government has improved a lot since August.
After the first packet of reforms is completed, the second one should be legislated by the end of the year. “I believe that the completion of [the second group of prior actions] is feasible by the end of the year,” Moscovici noted.
The French commissioner also discussed the issue of bank recapitalization, underlining that there is potential for growth in Greece but that requires a strong banking system. “During the weekend first steps were taken and more will be taken in order to strengthen banks and protect deposits,” Moscovici said.
On the subject of debt restructuring Moscovici said that the issue should be approached gradually and it requires a political agreement of all Eurozone member states. Tsakalotos said that negotiations on the debt can begin before Christmas and that the government is preparing a proposal to lenders.
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