Greece set to leave EU deficit black­list

Kuwait Times - - BUSINESS -

The EU rec­om­mended yes­ter­day that three times bailed-out Greece has made enough progress in balancing its bud­get to be re­moved from spe­cial over­sight of gov­ern­ment spend­ing. The move is a fur­ther boost for Athens days after it se­cured a fresh tranche of cash from its lat­est bailout to meet cru­cial debt pay­ments and avoid a fresh cri­sis. The de­ci­sion showed the progress Greece has made, said Euro­pean Com­mis­sion vice-pres­i­dent Valdis Dom­brovskis, who has spe­cial re­spon­si­bil­ity for the eu­ro­zone.

“I in­vite Greece to build on its achieve­ments and con­tinue to strengthen con­fi­dence in its econ­omy,” Dom­brovskis said, adding that it was “im­por­tant for a re­turn to the mar­kets.” EU rules re­quire mem­ber states to run a bud­get deficit-the short­fall be­tween gov­ern­ment rev­enue and spend­ing-of not more than 3.0 per­cent of to­tal an­nual eco­nomic out­put. The lift­ing of the Ex­ces­sive Deficit Pro­ce­dure (EDP) for Greece will al­low the gov­ern­ment greater lee­way in man­ag­ing its fi­nances after years of aus­ter­ity and spend­ing cuts de­manded by Brus­sels to bring the bud­get deficit un­der con­trol.

“This fol­lows the sub­stan­tial ef­forts in re­cent years made by the coun­try to con­sol­i­date its pub­lic fi­nances cou­pled with the progress made” in its debt res­cue pro­grams, the Euro­pean Com­mis­sion said in a state­ment. The Com­mis­sion noted that if mem­ber states ap­prove its rec­om­men­da­tion later this year, only three coun­tries will re­main un­der the ex­ces­sive deficit pro­ce­dureFrance, Spain and Bri­tain. —AFP

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.