Naftemporiki — European Commissioner Pierre Moscovici stated Wednesday in a written response to a question, that Greece would remain under fiscal supervision even after the current bailout program ends in August 2018.
Mr Moscovici said EU regulations apply until Athens pays off 75 percent of the financial support it has received from EU partners, the EFSM, ESM or the EFSF.
According to Naftemporiki, Mr Moscovici referred to (EU) No 472/2013, a regulation building on existing European Union rules relating to budgetary and macroeconomic surveillance.
The regulation “applies to Eurozone countries which are facing serious budgetary difficulties that could lead to financial instability. For example, they may be having difficulty bringing their public debt down to sustainable levels or they may have difficulty obtaining affordable loans. The main aim is to ensure stability in the eurozone by avoiding potential negative effects on other eurozone countries”. Mr Moscovici’s answer in this context seems to indicate that despite the upbeat rhetoric, the Commission does not regard the Greek debt as sustainable.
The regulation makes provision for post-programme surveillance until at least 75 % of the financial assistance has been repaid. Here, the Commission, in liaison with the European Central Bank, goes on regular missions to the eurozone country, which reports back on what it is doing to improve its public finances. If necessary, the Commission can propose to the Council that it recommends that the country concerned adopts additional measures.
It is not a secret that within Europe, the tendency for greater integration, calls for increased supervision by the Commission of all Eurozone countries under the ever strengthening terms of the Stability and Growth Pact.
