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Summaries of EU Legislation

Financial assistance to Greece

Date of last review:
24/07/2019
Initial creation date:
02/02/2017
Summarised document(s):
Author:
Publications Office of the European Union
Responsible entity(ies):
Directorate-General for Economic and Financial Affairs

Financial assistance to Greece

SUMMARY OF:

Regulation (EU) No 472/2013 on strengthening economic and budgetary surveillance in euro area countries experiencing or threatened with serious financial difficulties

Implementing Decision (EU) 2019/338 on the prolongation of enhanced surveillance for Greece

Implementing Decision (EU) 2018/1192 on the activation of enhanced surveillance for Greece

WHAT IS THE AIM OF THE REGULATION AND WHAT DOES THE FINANCIAL ASSISTANCE TO GREECE CONSIST OF?

  • Regulation (EU) No 472/2013 is designed to strengthen economic and budgetary surveillance for euro area countries experiencing or threatened with serious difficulties with respect to their financial stability.
  • Greece received financial support from euro area countries and the International Monetary Fund (IMF) to cope with its financial difficulties and economic challenges from May 2010 to August 2018. After the successful conclusion of the stability support programme on , Greece has been fully integrated into the European Semester framework of economic and social policy coordination. At the same time, the enhanced surveillance1 framework was activated for Greece as provided by Regulation 472 of 2013.

KEY POINTS

  • The first adjustment programme:
    • was announced by the Eurogroup on ;
    • provided €52.9 billion in bilateral loans from euro-area member countries to Greece under the Greek Loan Facility;
    • the IMF lent an additional amount of around €20 billion.
  • The second adjustment programme:
    • was approved by the Eurogroup on and ran until it expired in June 2015;
    • provided loans of €141.8 billion from euro-area member countries via the European Financial Stability Facility (EFSF);
    • the IMF lent an additional amount of around €12 billion.
  • The third adjustment programme:
    • began on and was successfully concluded on as scheduled;
    • provided loans of up to €86 billion from the ESM.
  • Before negotiations with the EU on the terms of the third adjustment programme could begin, Greece had to agree to:
  • In addition, Greece agreed to:
    • restore fiscal sustainability by reforming the VAT and pension systems and fighting tax evasion;
    • safeguard financial stability by recapitalising banks (i.e. restructuring their debt and equity) and strengthening their governance;
    • implement reforms that promote economic growth, job creation, competitiveness and investment;
    • modernise the state and public administration, in particular by improving the efficiency of the judicial system and stepping up the fight against corruption.
  • On the successful conclusion of the third adjustment programme, the European Commission adopted Implementing Decision (EU) 2018/1192 which activated enhanced economic and budgetary surveillance for Greece, taking effect on . A first enhanced surveillance report on Greece was published in November 2018 and a second in February 2019. Implementing Decision (EU) 2019/338 extended the period of enhanced surveillance for a further period of 6 months from .

    On , the third enhanced surveillance report for Greece was published.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since .

BACKGROUND

For more information, see:

KEY TERMS

  1. Enhanced surveillance: a post-programme framework adapted to Greece in view of the longstanding crisis and challenges faced. It will support the continuation, completion, and delivery of reforms agreed under the programme, in line with the commitments made by the Greek authorities through a close monitoring of the economic, fiscal and financial situation and its evolution.

MAIN DOCUMENTS

Regulation (EU) No 472/2013 of the European Parliament and of the Council of on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 140, , pp. 1-10)

Commission Implementing Decision (EU) 2019/338 of on the prolongation of enhanced surveillance for Greece (OJ L 60, , pp. 17-19)

Commission Implementing Decision (EU) 2018/1192 of on the activation of enhanced surveillance for Greece (OJ L 211, , pp. 1-4)

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