European Commission urges Greece to swiftly implement promised reforms

The European Commission, EC, urged Greece to take “swift” action to implement the reforms it promised in return for a fourmonth extension of a financial bailout program after the commissioners decided that the Greek government’s offer was “sufficiently comprehensive” to win them a reprieve.

The EC’s VicePresident for the Euro and Social Dialogue, Valdis Dombrovskis, and Commissioner for Economic and Financial Affairs, Pierre Moscovici said in a joint letter that “determined and swift implementation of reform commitments will be the key for a successful conclusion of the review”.

Both officials sent the letter Tuesday morning to the President of the Eurogroup, Jeroen Dijsselbloem, after the EC discussed the Greek reform proposal sent by Athens at midnight Monday.

On that list, the Greek government pledged to modernize its tax system and public administration, to reform social security, to fight corruption and not to reverse any privatization process already under way.

Dombrovskis and Moscovici considered that “this list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review”.

The European officials said they are “encouraged by the commitment to combat tax evasion and corruption through, inter alia, efforts to modernize tax and custom administrations, as well as to pursue reforms to modernize the public administration”.

“The Commission also notes ommitments in the area of statistics and considers it of vital importance that the institutional and operational independence of ELSTAT and its senior management be respected at all times,” the letter said in a reference to the controversial Greek Bureau of Statistics.

However, the European officials reminded Athens they expect to see further specifications of the reforms in these and other key areas before the end of April “in line with last week’s Eurogroup statement”.

The letter added that “The Commission looks forward to working with the new administration to elaborate what are at the moment still general commitments and transform these into clear policy actions”.

Until late April, Greece’s creditors will discuss the implementation of reforms, seeking to conclude the fifth and final review of the reforms and adjustments program associated with the Greek bailout, a step that has been suspended for months.

If the review concludes successfully,1.8 billion euros allocated for the rescue program may be released, and Athens will be allowed to obtain another 1.9 billion euros from the European Central Bank from the yields on Greek bonds.