Eurogroup lauds Greek efforts

Finance Minister Yannis Stournaras expressed Greece's request to ask for an agreement of debt relief from his European counterparts in Brussels, but, as expected, foreign officials indicated that a decision on this issue would not be considered until the fall.

At the end of yesterday's meeting, Eurogroup - composed of the finance ministers of the Eurozone countries - issued a joint statement on Greece, in which it expressed its satisfaction with the macroeconomic developments in the country, noting that "possible debt sustainability measures will be considered in the context of the next review", expected to have been completed after the summer.

Eurogroup Chairman Jeroen Dijsselbloem congratulated Greece on achieving a primary surplus and at a press conference after the summit, he said the “relative merits of possible debt sustainability” would be considered in Greece’s next bailout review. He added that Greek authorities should not lose “momentum” in their reform efforts.

German Finance Minister Wolfgang Schaeuble also praised Greece for its economic reform progress but noted that any decisions on debt would be taken “in the second half of the year.”

An official statement issued after the Eurogroup summit made remarks on the “ significant adjustment made allows the Greek economy to enter now a new phase, moving from stabilization and recovery to sustainable growth. The long-term strategy to foster growth presented to us by the Greek authorities shows a clear ownership and determination to continue the reform path. The Eurogroup supports this strategy that builds on the adjustment program by stepping up policies that raise private investment, facilitate economic activity and eventually lead to more job creation. We invite Greece to develop a more detailed action plan consistent with the existing program”.

The European Commission, in a forecast published yesterday, also offered encouraging signs. It predicted that Greece will return to growth sooner than anticipated, with a projected growth rate of 0.6 percent this year and 2.9 percent in 2015.