Regulatory review mission to Greece finds economic outlook to be unchanged

125px-Flag_of_Greece.svgStaff from the European Commission, European Central Bank and International Monetary Fund have wrapped up their recent economic and policy review mission to Greece, finding the economic outlook to be relatively unchanged from the last review.

Greek authorities and mission staff said the economy could return to growth next year under inflation below the eurozone average and improved wage flexibility, which have helped restore the Greek economy.

The Greek government has committed to implement all agreed-upon fiscal policies that have yet to be put into place, including the passage of legislation aimed at extending the collection of real estate taxes throughout the year.

Additionally, Greek authorities have made progress on measures intended to improve debt and tax collection through reforms to the revenue administration, a major focus of the mission because of its importance to the achievement of fiscal targets.

Staff teams reviewed potential administrative reforms, the liberalization of product and service markets, privatization of state-owned assets, electricity industry reforms. The teams also discussed with Greek authorities the strengthening of the social safety net to provide unemployment and health benefits to citizens.

The mission said continued full program implementation coupled with commitments by eurozone member states to consider future initiatives to reduce Greece’s debt-to-GDP ratio should ensure the long-term sustainability of Greece’s public debt.

Eurozone member states may soon agree to disburse the $3.7 billion in the European Financial Stability Facility remaining from the previous review because goals for Greece’s economy will likely be reached in the near future.

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