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. 28/03 18:41

    Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups

  2. 28/03 17:32

    Greece to auction three-month T-bills on April 3, 2024 in a book entry form

  3. 28/03 15:46

    Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network

  4. 28/03 14:44

    IPTO announces framework agreement tender for undersea power cables in Greece

  5. 28/03 11:49

    IOBE: Construction sector in Greece records robust growth and good prospects

  6. 26/03 23:51

    St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ

  7. 26/03 21:59

    PM at Economic Club of Canada: Greece is an attractive investment destination

  8. 26/03 17:56

    Greek State budget primary balance reaches a surplus of 3,378 million euros

  9. 26/03 11:45

    Ancient Messene to get upgraded visitors' facilities after approval by Council

  10. 23/03 17:43

    New requirements for 'Golden Visa' program to kick in on March 31

  11. 23/03 16:49

    Athenians continue to head out of the Greek Capital for March 25 long weekend

  12. 23/03 16:47

    Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm

  13. 22/03 21:54

    US President on Greek Independence Day: Alliance with Greece stronger than ever

  14. 22/03 19:51

    High diplomacy and geopolitics at Delphi Economic Forum IX in Greece

  15. 22/03 19:32

    Tax authorities enable payments with foreign bank cards in Greece

  16. 22/03 14:19

    Greece to take part in Earth Hour on Saturday

  17. 22/03 00:24

    Greece ranks first on list of countries with fastest business environment progress

  18. 22/03 00:02

    Hellenic Police acquires first electric VAN-type highway patrol vehicle

  19. 21/03 22:41

    Greek Finance Ministry tightens Golden Visa rules

  20. 21/03 15:33

    Unseen Museum presents "The stele of the twin babies" exhibition in Athens

  21. 20/03 22:48

    Health Minister: 95% of Greek hospitals to perform afternoon surgeries

  22. 20/03 21:52

    Greek Deputy Minister of Justice meets delegation from US Embassy in Athens

  23. 20/03 21:44

    Greek Interior Minister to visit United States and Canada on postal vote

  24. 20/03 20:55

    Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance

  25. 20/03 18:01

    Development Minister: We continue the battle against high prices in Greece

  26. 19/03 22:28

    President of the Hellenic Republic meets her Ethiopian counterpart in Athens

  27. 19/03 20:57

    Greek Tourism Minιster meets Hellenic Chamber of Hotels

  28. 19/03 20:25

    FinMIn: Moody’s analysis records significant progress in the Greek economy

  29. 19/03 11:15

    Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin

  30. 18/03 22:20

    American Hellenic Educational Progressive Association honors Past Supreme President

  31. 16/03 13:01

    Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens

  32. 16/03 12:56

    Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto

  33. 16/03 11:28

    Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres

  34. 15/03 21:50

    Greek Minister announces conference on defence ecosystem in Athens from Lithuania

  35. 15/03 13:45

    PM: More than 80 hospitals and 156 health centres being upgraded in Greece

  36. 15/03 12:55

    Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation

  37. 14/03 23:43

    President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava

  38. 14/03 22:58

    American Express report highlights Global Travel Trends during 2024

  39. 14/03 22:52

    Four hospitals in Attica Region already organizing afternoon surgical procedures

  40. 14/03 22:49

    US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki

  41. 14/03 22:43

    Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos

  42. 14/03 19:32

    No new intubations for Covid-19 recorded in Greece for the first time

  43. 14/03 18:36

    Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday

  44. 14/03 14:48

    HRADF eyes bidders for Lavrio Port majority share

  45. 14/03 12:54

    Electric buses to be deployed on the streets of Athens and Thessaloniki by May

  46. 13/03 22:23

    Chairman: 2023 was an exceptional one for AEGEAN Airlines

  47. 13/03 20:11

    Prices of basic lenten products either lower or equal to last year's in Greece

  48. 13/03 19:15

    US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis

  49. 13/03 17:19

    Greece shines at 1st European Cruise Exhibition

  50. 13/03 12:26

    Greece shows new costumes for revamped Olympic Flame-lighting ceremony

  51. 12/03 22:46

    Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’

  52. 12/03 21:38

    The President of the Hellenic Republic to visit Slovakia on March 13-15

  53. 12/03 20:29

    First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki

  54. 11/03 23:58

    Greek Foreign Minister: We stand behind Montenegro's European perspective

  55. 11/03 23:47

    Visa Express for Turkish citizens to commence on five Greek islands in March

  56. 11/03 19:40

    Amadeus acquires travel payments expert Voxel

  57. 11/03 18:49

    Microsoft Data Center construction kicks off in Spata next to Athens Airport

  58. 11/03 17:53

    Dodecanese Federation marked 76th Anniversary of Unification with Greece

  59. 09/03 22:23

    The future of travel planning is multimodal and interactive

  60. 08/03 14:27

    Prime Minister: Radical change in Greek education and a brave reform for growth

  61. 08/03 14:24

    Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests

  62. 08/03 14:24

    Applications to out-of-court settlement more than doubled in Greece in February

  63. 08/03 13:18

    Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday

  64. 07/03 14:12

    Athens wins World Travel Award 2024 as the top city-break destination in Europe

  65. 06/03 22:51

    WTTC data show Greece and Portugal lead league for growth in tourist arrivals

  66. 06/03 20:28

    Greek Tourism Minister at ITB: 2024 will be another excellent year for sector

  67. 06/03 19:47

    Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday

  68. 06/03 18:43

    European Union actions of 274m euros to support cultural heritage in Greece

  69. 06/03 16:37

    'Odontotos' rack railway temporarily stopped until landslides issue is resolved

  70. 06/03 14:40

    Minister: Bringing about the return of Greeks abroad 'a moral duty'

  71. 05/03 14:28

    Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida

  72. 05/03 14:21

    The 'Lent Basket' to be launched in Greece on March 13

  73. 05/03 14:11

    ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023

  74. 05/03 12:24

    Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'

  75. 04/03 22:02

    Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly

  76. 04/03 21:47

    Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary

  77. 04/03 20:27

    Labor chief: Greece to train 500,000 workers in digital, green skills by 2025

  78. 04/03 19:44

    Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday

  79. 04/03 15:12

    Athens Riviera | The summer experience with Athens as a background

  80. 29/02 22:54

    Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday

  81. 29/02 21:44

    Greece and Germany set up Working Group on shipping cooperation

  82. 29/02 21:30

    Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points

  83. 29/02 21:03

    Temple of Poseidon at Sounion near Athens to get new lighting system

  84. 29/02 21:02

    Greek Tourism Minister meets with Ambassador of Qatar

  85. 29/02 20:47

    Greece is represented by 60 firms at GULFOOD 2024 exhibition

  86. 29/02 19:58

    Greek government gives 1+1 month extension for cash register-integrated POS terminals

  87. 29/02 19:49

    Archangel Michael Church Dance Program shines at Folk Dance Festival in SF

  88. 29/02 15:39

    'Renovate-rent' programme to be launched, Minister tells Greek Parliament

  89. 29/02 12:39

    Rio-Antirrio ferry line in central Greece closed due to strong winds

  90. 28/02 21:34

    Weather with heavy rain and storms in Greece as of Sunday night

  91. 28/02 17:31

    CEO: The goal is for PPC to become a leading player in Southeast Europe

  92. 28/02 17:04

    New Wyndham Hotels Market Managing Director of Central and Eastern Europe

  93. 28/02 12:21

    Minister: Transactions with the Greek State will be further simplified in 2024

  94. 28/02 11:57

    24-hour strikes halt trains and ferries in Greece

  95. 27/02 17:25

    UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists

  96. 27/02 15:00

    Greek Prime Minister: Relations with Armenia can become even more productive

  97. 27/02 14:26

    Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world

  98. 27/02 13:15

    Price cuts of up to 15% in important product categories in Greece after March 1

  99. 27/02 12:46

    Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion

  100. 26/02 18:30

    Annual Summit of Women Political Leaders (WPL) to be held in Athens in April