Eurogroup chief: 1.9 billion from tax free threshold in 2019 if targets not met

Α Decrease font Enlarge font
Eurogroup chief: 1.9 billion from tax free threshold in 2019 if targets not metDijsselbloem released Malta EuroGroup agreement

The head of the EuroGroup, Jeroen Dijsselbloem disclosed the content of the April 7 Malta EuroGroup agreement between Greece and its creditors. In a letter he sent to the EuroGroup members Mr. Dijsselbloem presented the results of the Malta meeting. With regards to Greece the official meeting covers the following:

4. Greece – State of play

The institutions and myself debriefed the Eurogroup on the state of play of the second review of the stability support programme, following the intensive talks on the main outstanding issues that have taken place following our last Eurogroup meeting. The institutions and the Greek authorities have reached an agreement on the main overarching elements of the post-programme policy package. In support of rebalancing Greece’s public finances in a growth-friendly manner, the Greek authorities have agreed to legislate a package of fiscal structural measures amounting to 2% of GDP: a pension reform amounting to 1% of GDP will be implemented in 2019, while the personal income tax reform amounting to 1% of GDP will be implemented in principle in 2020, unless a frontloaded implementation is needed in order to reach the agreed 3,5% primary surplus fiscal target in 2019. We also agreed that the Greek authorities can legislate a contingent expansionary package that will be implemented starting in 2019, provided that the agreed mediumterm targets are met. We invited the institutions and the Greek authorities to continue technical work in order to reach an agreement on a full policy package as soon as possible. Once this is reached, the Eurogroup will also come back to the issue of the medium-term fiscal path for the post-programme period and debt sustainability, based on the agreement reached in May 2016, in order to reach an overall political agreement.

Following is the complete Malta Agreement

Subject: Eurogroup of 7 April 2017

Dear colleagues,

I would like to share with you the main content and course of our discussions at the Eurogroup meeting of 7 April in Valletta (Malta). Our meeting was attended by Commissioners Pierre Moscovici and Valdis Dombrovskis, ECB President Mario Draghi and Executive Board Member Benoît Coeuré, and ESM Managing Director Klaus Regling. We were also joined by the Chair of the Supervisory Board of the Single Supervisory Mechanism (SSM) Danièle Nouy and Chair of the Single Resolution Board (SRB) Elke König for the Banking Union – euro area aspects discussion, and by Poul Thomsen, Director of the IMF’s European Department, for the discussions on Greece and Cyprus.

1. Thematic discussion on growth and jobs – Investment (common principles)

In the context of our regular thematic discussions on growth and jobs, we exchanged views on common principles to support investment in the euro area. Investment in the euro area still shows signs of weakness. Addressing these weaknesses can increase economic convergence and improve the resilience of the economic and monetary union. We adopted a Eurogroup statement (see annex) outlining three common principles to guide policy action. These cover (i) promoting private investment; (ii) prioritising productivity-enhancing public investment; and (iii) developing market-based sources of financing. We also considered that addressing investment weaknesses could also be further supported by initiatives at the European level. We asked the Commission to review this issue periodically and will revisit the question of the feasibility of developing appropriate benchmarking in this area once further progress has been achieved.

2. Banking Union – euro area aspects: Fifth hearing of the Chair of the ECB Supervisory Board and presentation by the SRB on its activities

Danièle Nouy reported on the execution of the supervisory tasks by the ECB Supervisory Board in 2016, the health of the banking sector, work on Less Significant Institutions and the supervisory priorities for 2017: (i) the further assessment of banks’ business models and profitability drivers, (ii) risk management and (iii) credit risks, with a special focus on non-performing loans (NPLs) and concentrations. Danièle Nouy indicated that the 2016 stress test had shown that the banking sector is more resilient and much better able to absorb economic shocks than in 2014. However, banks continued to face a number of structural challenges. Elke König, provided a general update on SRB activities. She informed us about progress on i) resolution planning, where the aim for 2017 is to extend resolution plans to approximately 130 banks within the SRB’s remit ii) MREL (minimum requirement for own funds and eligible liabilities) targets, where the SRB intends to set binding targets at consolidated level for major banking groups under its remit in 2017 and the general state of play regarding the SRF, which should reach EUR 17 bn in the course of 2017. All the Loan Facility Agreements (LFAs) have now been signed. The Chairs of the ECB Supervisory Board and the SRB as well as the Commission further clarified the interactions between supervision, resolution and the implementation of the single rule book (BRRD) and state-aid rules. Danièle Nouy called for a renewed ambition to reduce Options and National Discretions (ONDs). We thanked Danièle Nouy and Elke König for their presentations and the good work undertaken so far. We will take stock of the progress being made on these issues as part of the discussion on the Roadmap of the Banking Union at the June ECOFIN Council. We looked forward to our next exchange of views next autumn.

3. Preparation of international meetings: exchange rate developments

As customary, we took stock of recent exchange rate developments ahead of the IMF Spring meetings, on the basis of an assessment by the Commission and the ECB. The Commission explained that the euro has depreciated in nominal effective terms over the last six months. The depreciation has been relatively broad based, as the euro has weakened against the currencies of most of the euro area’s main trading partners. Changes in financial markets’ assessment of monetary and financial stances across regions and countries appear to have largely driven recent developments in the exchange rates of major currencies. We broadly concurred with the views of the Commission and the ECB on exchange rate matters in view of upcoming international meetings. As regards the euro exchange rate and the euro area’s external surplus, it was recalled that the euro exchange rate and euro area external balances are the result of market forces.

4. Greece – State of play

The institutions and myself debriefed the Eurogroup on the state of play of the second review of the stability support programme, following the intensive talks on the main outstanding issues that have taken place following our last Eurogroup meeting. The institutions and the Greek authorities have reached an agreement on the main overarching elements of the post-programme policy package. In support of rebalancing Greece’s public finances in a growth-friendly manner, the Greek authorities have agreed to legislate a package of fiscal structural measures amounting to 2% of GDP: a pension reform amounting to 1% of GDP will be implemented in 2019, while the personal income tax reform amounting to 1% of GDP will be implemented in principle in 2020, unless a frontloaded implementation is needed in order to reach the agreed 3,5% primary surplus fiscal target in 2019. We also agreed that the Greek authorities can legislate a contingent expansionary package that will be implemented starting in 2019, provided that the agreed mediumterm targets are met. We invited the institutions and the Greek authorities to continue technical work in order to reach an agreement on a full policy package as soon as possible. Once this is reached, the Eurogroup will also come back to the issue of the medium-term fiscal path for the post-programme period and debt sustainability, based on the agreement reached in May 2016, in order to reach an overall political agreement.

5. Miscellaneous

a. Cyprus – Post-programme surveillance – 2d review – oral debrief

We were debriefed by the institutions on the main findings of the 2d post-programme surveillance (PPS) mission in Cyprus, which took place at the end of March. We welcomed the institutions’ assessment that growth will remain robust in 2017 and that the fiscal performance in 2016 will likely be stronger than expected. However, these good results should not lead to a relaxation of efforts on the structural and fiscal fronts as uncertainty remains high. Regarding the financial sector, we noted the uneven progress in resolving NPLs. Sustained efforts are needed to improve NPL resolution.

Yours sincerely,

Jeroen DIJSSELBLOEM

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Tornos
  1. 19/09 23:27

    Impressive sight in "I. Kapodistrias" - At the most incredible airports in the world

  2. 19/09 23:14

    TripAdvisor: Top 10 Museums in Greece for 2017

  3. 19/09 22:53

    Turnover of the tourism related house rental in Greece estimated at € 1.7 billion in 2017

  4. 19/09 22:45

    TripAdvisor: Athens Acropolis Museum among top-8 in the world for 2017

  5. 19/09 18:51

    20-year extension of Athens airport concession to net €600 million for privatization program

  6. 19/09 18:48

    Greek-Chinese Joint Interministerial Committee meeting starts on Wednesday

  7. 19/09 18:45

    Greek island of Andros in Cyclades opens up to new tourism markets

  8. 19/09 18:40

    Daily Mail: British tourist wins €34,000 in damages from Greek hotel in Santorini

  9. 19/09 18:35

    Rotterdam experts: Alimos Beach in Athens ready for use in four days (video)

  10. 19/09 18:30

    GBR Consulting: Rise in occupancy of 5-star hotels in Athens but not in prices

  11. 19/09 18:05

    Iconic Temple of Olympian Zeus in central Athens to get structural makeover

  12. 19/09 17:53

    12th Annual Greek Roadshow to be held in London on September 20-21

  13. 19/09 17:49

    Israeli film entry in this year's Athens International Film Festival

  14. 19/09 17:36

    Mini heat wave hits Greece in September as tourism still blooms

  15. 19/09 16:05

    PAO football player Nikals Hult’s partner enjoys Greek vacation on Milos island

  16. 19/09 14:10

    Talks for sale of 40% of Greek power utility's lignite-fired capacity shift to EU

  17. 19/09 12:19

    Greece urges Ukraine not to restrict minority mother-tongue education

  18. 19/09 10:25

    National Bank: Greek labor market recovery picks up

  19. 19/09 01:16

    Alpha Bank to organize Fintech Challenge 2017 in Greece

  20. 19/09 01:12

    Greek teenager wins bronze medal in Microsoft Championships

  21. 19/09 01:09

    Museums and archaeological sites go on winter schedule in Greece

  22. 19/09 01:04

    Greek Community of Melbourne and National Library of Greece strike historic deal

  23. 19/09 00:59

    August sees new historic record in tourist arrivals in Cyprus

  24. 19/09 00:25

    Ancient Greek play "Iphigenia in Aulis" opens at the Getty Villa in Malibu

  25. 19/09 00:19

    European Investment Bank plans to inject around 7.0 billion in Greece

  26. 19/09 00:05

    Ancient Greek fortress discovered in Southern Russian Krasnodar region

  27. 18/09 22:53

    All-star line up at Gazi concert for Greek street paper ‘Shedia’ on Tuesday

  28. 18/09 20:49

    UNWTO reports record month for Greek tourism in July 2017

  29. 18/09 17:46

    Visit Greece: Ouzo,the uplifting Greek drink

  30. 18/09 16:38

    Municipality: Beaches in Vari, Voula and Vouliagmeni remain clean

  31. 18/09 14:34

    Report: Cyprus sells citizenships to billionaire Russians and Ukrainians

  32. 18/09 12:30

    At least 1,500 cubic meters of oil pumped out of sunken tanker in Saronic Gulf so far

  33. 18/09 10:35

    Rare artifacts and complex features in architecture found in Minoan palace on Cretan mountain

  34. 17/09 21:08

    Greece wins “Best Video in Europe” UNWTO Award

  35. 17/09 21:02

    Reuters: EU plan to raise taxes for global internet firms faces obstacles

  36. 17/09 20:54

    Report: Hiked property rent impacts all social groups in Greece

  37. 17/09 20:50

    Αt least 800 tons of heavy fuel oil pumped so far in the Saronic Gulf

  38. 17/09 20:41

    Customs officers in Thessaloniki port’s Gate 16 cut night shift as of today

  39. 17/09 20:32

    Navarino Challenge 2017 program of activities announced in Greece

  40. 17/09 20:26

    Terror alert at Paris airport with British Airways flight grounded (video)

  41. 17/09 20:21

    Greek opposition head: Private investments will be the key driver of economic growth

  42. 17/09 19:17

    Weather Forecast: Mini Autumn heatwave continues in Greece on Monday

  43. 17/09 15:06

    Impressive Air Show demonstrations at 2017 Athens Flying Week (videos)

  44. 17/09 14:16

    NYC Greek Film Festival on September 28: Romance, Mystery and Mercouri

  45. 17/09 14:00

    SEV: Each worker in private sector supports 2.8 jobless or public servants

  46. 17/09 13:51

    Greek chefs give Athens democracy forum guests a taste of filoxenia

  47. 17/09 13:45

    FinMin: Greece will not likely need precautionary credit line after program

  48. 17/09 13:38

    Debt write-offs to be based on properties in Greece

  49. 17/09 13:26

    New permanent representative of Greece to the UN presents credentials

  50. 17/09 11:31

    Research: Earthquakes might have shaped ancient Greek culture

  51. 16/09 21:33

    Eurogroup chief: Aim is to complete Greek 3rd review before end of year

  52. 16/09 21:27

    Size and value obstacles in Juncker stimulus plan's application in Greece

  53. 16/09 21:23

    UK Prime Minister Theresa May raises terror threat to “critical”

  54. 16/09 21:18

    Greek health ministry decision bans swimming in areas affected by oil spill

  55. 16/09 21:10

    Full list of features of Delphi Bank Greek Film Festival in October announced

  56. 16/09 21:06

    Greek Shipowners' president to UK minister: London like a 'second home to us'

  57. 16/09 20:57

    Greek FM in New York to participate in UN General Assembly session

  58. 16/09 20:50

    Uproar over American rapper singing in Santorini Greek Orthodox Church Altar (video)

  59. 16/09 20:45

    Local official: Beaches between Voula and Sounio are not affected by oil spill

  60. 16/09 20:38

    Eurozone warns Greece over austerity delays and Georgiou prosecution

  61. 16/09 18:32

    Greek foreign ministry condemns terrorist attack in London underground

  62. 16/09 16:27

    Greek opposition leaden repeats he’ll back private colleges in Greece

  63. 16/09 16:15

    ECB opposes IMF demand over new stress tests and AQR for Greek banks

  64. 16/09 12:04

    (Update) Greek police arrest 55-year-old man over theft of 5.7 million-year-old footprints in Crete

  65. 16/09 10:51

    Futuristic “Star Trek” superyacht docks in Mykonos (video)

  66. 15/09 18:26

    Dare to visit North Korea as a tourist?

  67. 15/09 18:18

    Advito’s 2018 Industry Forecast predicts how new technologies shape the future of travel

  68. 15/09 18:03

    Ferrovie dello Stato Italiane Group CEO: We are a strategic investor for Greece

  69. 15/09 18:00

    Maritime Cyprus 2017 conference takes place in October in Limassol

  70. 15/09 17:57

    IMF urges for asset quality review and stress tests for Greek banks

  71. 15/09 17:51

    Global concern after North Korea fires ballistic missile over Japan

  72. 15/09 17:48

    Greek banks reduce borrowing from ELA Eurosystem in August

  73. 15/09 17:45

    Greece's Eurobank in talks to sell Romanian subsidiaries

  74. 15/09 17:39

    Engine failure on London to Athens British Airways plane upsets passengers

  75. 15/09 17:36

    Greek PPC unveils areas of cooperation with Chinese Shenhua Group

  76. 15/09 17:33

    Greece and US “working systematically” for a Tsipras-Trump meeting

  77. 15/09 17:28

    Opposition head outlines vision for northern Greece as global player in tech innovation

  78. 15/09 17:24

    Media Minister on CNN: Greece to return to markets in August 2018 (video)

  79. 15/09 17:21

    ECB underlines improvement in liquidity of Greek banks

  80. 15/09 16:55

    Elevation of the Holy Cross celebrated by Greeks worldwide (Video)

  81. 15/09 16:52

    Greek port passenger traffic down and cargo traffic up in Q1

  82. 15/09 16:49

    Visitors and revenues in Greek museums and ancient sites up in January-May

  83. 15/09 16:44

    22 hurt as improvised bomb explodes on London subway train (video)

  84. 15/09 14:37

    Greek Parliament President announces plans for Democracy Museum

  85. 15/09 12:30

    German tour operator Alltours buys out second hotel on Crete island, Greece

  86. 15/09 10:22

    Greek airports: 9.7% increase in passenger traffic during the summer

  87. 14/09 22:29

    Juncker: Greece was the most difficult part of my political career

  88. 14/09 22:24

    Group of UK and US investors to buy Hellenic Sugar Industry

  89. 14/09 22:18

    Greek opposition leader to start three-day visit to Thessaloniki for 82nd TIF

  90. 14/09 22:12

    Greek unemployment rate drops to 21.1% during Q2 2017

  91. 14/09 22:06

    Report: Tourists in Greece spend less than in Spain and Cyprus

  92. 14/09 21:56

    Greek import price index up by 4.2% in July

  93. 14/09 21:50

    Stavros Niarchos Foundation landmark gift of $55 million to NYPL (video)

  94. 14/09 18:44

    Gentiloni: Best time to mutiply investments between Greece and Italy

  95. 14/09 16:32

    Eight Greek enterprises take part in Asia Fruit Logistica fair

  96. 14/09 14:25

    Cyprus eyes national strategy after record tourism year

  97. 14/09 12:11

    Greek Minister gearing up to chair OECD High Level Meeting on Tourism Policies in Paris

  98. 14/09 11:03

    Italian Ferrovie Dello Stato Italiane officially buys Greek TrainOSE

  99. 14/09 10:50

    Fossil footprints of early human ancestor stolen from archaeological site in Kasteli, Crete

  100. 14/09 09:00

    No Metro lines to Athens International Airport today due to work stoppage