Greece agrees economic policies with troika

6 Aug 12
Greece is to face a further inspection from the troika of international finance officials next month after the country agreed to ‘strengthen’ its economic reforms.

By Richard Johnstone | 6 August 2012

Greece is to face a further inspection from the troika of international finance officials next month after the country agreed to ‘strengthen’ its economic reforms.


A statement yesterday by the trio of the European Commission, the European Central Bank and the International Monetary Fund said the latest discussions in Athens on the economic programme of liberalisation and government spending reductions had been ‘productive’.

The group is monitoring the introduction of economic reforms as part of the conditions of a €130bn (£110bn) bailout, and its most recent mission ended on Sunday. As well as public spending reductions that have led to fierce opposition, Greece has promised to privatise some state assets.

The rescue plan was agreed in February to help Greece meet repayments to private creditors that threatened to bankrupt the country.

However, progress has been affected by the two sets of elections held in Greece this year. The second poll in June came after no government could be formed after voting in May.

A coalition of pro-bailout parties was formed in June, and staff from the troika said discussions with the new administration were ‘productive’. There was ‘overall agreement on the need to strengthen policy efforts to achieve its objectives’, the statement added.

Reformed economic policies are needed ‘to restore growth and competitiveness, secure a sustainable fiscal position, and underpin confidence in the financial system’, the three institutions said.

‘The Greek authorities are committed to proceeding with determination in their work over the next month, and the EC/ECB/IMF staff teams expect to return to Athens in early September to continue the discussions,’ the statement added.

Following the visit, it has been reported that the leaders of the coalition parties will begin a new round of talks on Monday to finalise the details of spending cuts and structural reforms.

Prime Minister Antonis Samaras is due to meet Pasok’s Evangelos Venizelos and Democratic Left’s Fotis Kouvelis to discuss the details of the €11.5bn in cuts for the next two years and the imminent sale of state assets.


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