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European review of Greece finds macroeconomic outlook could return to growth

125px-Flag_of_Greece.svgStaff from the European Commission, European Central Bank and International Monetary Fund recently returned from their review mission to Greece, finding that the macroeconomic outlook aligns with projections and could return to growth next year.

The staff report said that while the country continues to make progress, policy implementation lags behind in some areas.

“The authorities have committed to take corrective actions to ensure delivery of the fiscal targets for 2013-14 and achieve primary balance this year,” the staff said in their post-review report. “These actions include concrete steps to gain control over health sector overspending. The income tax, property tax, and tax procedure codes are being reformed, and the autonomy and efficiency of revenue administration is being strengthened.”

Greek authorities have also vowed to return to administrative reforms, like the completion of staffing plans by year’s end and the placement of staff in mobility and reallocation.

“With the recapitalization of the banking sector nearly complete, the authorities have committed to further steps to safeguard financial stability, including through the sale of two bridge banks and completion of their strategy for a four-pillar banking system,” the report said. “These reforms are a further important step towards facilitating adjustment and enabling growth.”

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