Legislation of “precautionary measures” in the present is a condition for conclusion of the now delayed second review of the Greek program (third bailout), a Eurozone official stressed on Thursday evening.
The official spoke at the end of a EuroWorking Group meeting in Brussels, a venue that witnessed a downgraded Greek government representation.
The statement more-or-less echoes official and unofficial statements by European creditors and the IMF over the past couple of months, as the Tsipras government faces yet another gasping attempt to conclude a bailout review in order to continue to receive loan tranches.
The same official mentioned, however, that no in-depth discussion on the Greek program took place at the EWG, with EZ member-states’ representatives merely expressing encouragement for Athens and creditors to conclude the agreement.
On a more ominous note for the leftist-rightist coalition government, the source said the view at the EWG is that any agreement to conclude the second review must include measures to close a projected fiscal gap in 2018, along with well-publicized precautionary measures – which the Greek government has repeatedly said it will not enact in a pre-emptive manner. Creditors, especially the IMF, want the additional austerity measures in order to ensure that primary budget surplus targets of 3.5 percent of GDP after 2018 are achieved.
The EWG’s technocrats added that labor sector liberalization should also be included in Athens’ “to do” list — essentially meaning that Euro zone partners want every outstanding issue demanded by the “quartet” of creditors resolved.
