Austerity exit and debt relief for Greece a real possibility


Eurozone Group

Eurogroup President Mario Centeno appeared optimistic about Greece getting debt relief ahead of Thursday’s crucial Eurogroup meeting.

Centeno was hopeful of a debt relief package that will restore sustainability and mark a new stage for the Greek economy as all finance ministers weighed the possibility during their meeting.

French Finance Minister Bruno Le Maire said that it was time to recognise that “Greece has really done the job, has fulfilled its commitments. And now we have, from our side, to also fulfill our commitments and to try and find the best solution for the treatment of the Greek debt.”

Greece’s debt now stands at 180 percent of its GDP and its government is hoping there will be agreement on debt relief as a reward. 

  “Today is the perfect day to celebrate the 20th anniversary of the Eurogroup. We have a very important day with an ambitious agenda ahead of us and I think that we can take a leap forward in the progress of this agenda, that we have been working alot [on] in the last month.

“Let me start with Greece. We just got information that Greece complied with all 88 prior actions of the fourth review; this is really remarkable and it shows a great commitment by the Greek authorities to the success of the programme.

“We will deliver today, in the Eurogroup, I am optimistic in that sense, and we will find a debt relief package that will promote sustainability [of] the Greek debt in the future. We can be reassured that today, this will mark a new stage to the Greek economy,” Centeno said.

Meanwhile EU Commissioner for Economic and Financial Affairs, Pierre Moscovici said on Thursday that it is a historic day for Greece and the eurozone, adding that now a credible set of measures are needed on Greek debt.

Speaking to the media Moscovici  said that there is a positive mood on both sides regarding the deal.

“I am convinced that we will manage it,” he said.

GCT Team

This article was researched and written by a GCT team member.