Reuters — The European Commission is confident that Greece will conclude the reforms needed to unlock bailout funds before next week’s meeting of euro zone finance ministers, top officials said on Monday.
Greece and its international lenders wrapped up the bulk of reforms needed for badly needed bailout cash in May, but left some loose ends which must be tied up before Athens can receive instalments of 10.3 billion euros by September.
“The Greek authorities have done 95 per cent of changes necessary but not all is finalised. Some changes have to be made in the coming hours,” Economic Affairs Commissioner Pierre Moscovici told EU lawmakers in Strasbourg.
“I am confident Athens will use the time before the Eurogroup to finalize the limited issues that are still open,” Moscovici added, saying that a disbursement of a first tranche of 7.5 billion euros could be decided as early as next week and be made this month.
Commission Vice President Valdis Dombrovskis said one of the conditions was the setting-up of an independent agency to collect tax revenue. Euro zone finance ministers will discuss the finalization of the Greek deal in a regular meeting in Luxembourg on June 16.
To qualify for the funds, Greek lawmakers reluctantly approved tax rises and pension reforms, freed up the sale of bad loans weighing on banks’ balance sheets and promised to expedite privatizations.
But Greece must also legislate a series of extra actions which the leftist-led government is resisting due to growing dissent at home after six years of belt-tightening. . Another of the measures is phasing out a top-up benefit to pensioners. Other 0pen matters include the privatization of the old airport at Hellnikon, the transfer of 5 percent of the Greek Hellenic Telecommunications Organization (OTE) to the Hellenic Republic Asset Development Fund.
Issues such as electricity pricing, bank administration restructuring, social security issues, civil aviation reforms and regional airport privatizations are being moved to September when the second evaluation is due.
