The 11th evaluation for Greece in the Eurogroup on Monday – The preliminary draft budget in the Parliament

The draft budget will be submitted to Parliament tomorrow, Monday, which will move in the context of the prime minister’s announcements at the Thessaloniki International Fair (TIF).

It should be noted that the cost of interventions for 2021 and 2022 is of the order of 3.5 billion euros. Of these, 1.1 billion relate to 2021, while another 2.4 billion are planned for 2022.

The final draft budget will be submitted to Parliament on November 21 and will become state law before the end of the year.

The 11th enhanced monitoring report is also expected to be discussed tomorrow at the Eurozone Council of Finance Ministers in Luxembourg.

According to the announcement, although a long discussion is not expected, the finance ministers will be informed about the report by the Greek Minister Christos Staikouras, who will also explain the government’s plan regarding the settlement of the debts of the State to the private sector. red loans and the necessary reforms in the wider economic sector.

However, the 11th report is not related to the disbursement of profits by Greek bonds.

Meetings

Prior to the Eurogroup meeting, the Minister of Finance will have working meetings with the Executive Director of the European Stability Mechanism (ESM), Mr. Klaus Regling, as well as with the member of the European Court of Auditors (ECA), Mr. Nikos Milionis and his executives. ΕΕΣ.

On Tuesday, Mr Staikouras will attend the Ecofin meeting to discuss economic recovery in Europe – with an emphasis on the implementation of the Recovery and Sustainability Mechanism and the SURE program to support employment – and final approval is expected for the Malta National Recovery and Sustainability Plan.

In addition, the European Union Finance Ministers, in accordance with the agenda, will hold a policy debate on the revision of prudential rules for insurance and reinsurance companies under the Solvency II Directive. The discussion will be based on the relevant proposal of the European Commission.

Ministerial Meeting in Paris

The Minister of Finance will then travel to Paris to attend the Ministerial Meeting of the Organization for Economic Co-operation and Development, which takes place on Tuesday and Wednesday at the OECD headquarters.

The central theme of the Summit, attended by the Ministers of Finance, Economy, Foreign Affairs and Trade from the OECD Member States and Partner States, as well as representatives of other international organizations, is: “Common values: Building a green and inclusive future ».

Mr. Staikouras will make interventions during the Summit on issues of sustainable, green and inclusive development.

The 11th evaluation

It is recalled that the 11th assessment records the fastest recovery of the Greek economy, highlighting progress in a series of reforms.

He also estimates that GDP will grow by 4.3% this year and 6% in 2022, due to the recovery plan and support measures to tackle the pandemic. However, there are also indications of arrears, such as overdue debts of the State and with an asterisk on the issue of red loans.

Where progress is delayed

According to the report, progress in some areas is slower than reported in the 10th assessment. He notes that the overdue public debt remains at 900 million euros, exceeding the July target by almost 80% and stresses that this is a serious discrepancy raises concerns, given the extensive reassessment of the liquidation targets undertaken in the 10th report.

The current delay makes the goal difficult to achieve even by the end of September. Authorities are called upon to speed up the implementation of all actions that facilitate the settlement of arrears and prevent the accumulation of new ones, in order to avoid any future changes in the agreed targets.

However, according to the Commission, it is encouraging that the implementation of the Court of Auditors’ recommendations for clearing delays is continuing as planned and that the authorities have identified proposals to simplify certain budgetary procedures, the majority of which will be adopted by October and October. 2021.

The course of reforms

The authorities, as the report notes, have made significant overall progress on reforms, with a particular emphasis on progress on privatization, on improving the investment environment and the completion of the staffing of the Independent State Revenue Authority (AADE). It is also stressed that in education, after the completion of several reforms, the new law on universities is expected to be adopted at the end of 2021, which is later than planned, while in the field of Health, the authorities will consult the law on primary care by mid-October. Regarding the field of Justice, according to the report, the authorities have noted, however, that the implementation should proceed in order to improve the speed of administration of justice.

Greece, according to the report, has taken all necessary measures against the commitments it has made, despite the challenging conditions due to the pandemic