Greek benefit from Ecofin decisions

The European Union finance ministers reached a compromise agreement for the new Stability and Growth Pact on Wednesday during an Ecofin teleconference, after weeks of arduous consultations on the new reform framework on the pace of debt and deficit reduction by member-states.

For France and Greece, the decision of the 27 ministers to exclude defense spending from the calculation of the excessive deficit is particularly important. For Athens, there is also satisfaction, as at the same time an explicit reference is added, “in a positive way, to the issue that will arise in 2033 in relation to the calculation of the interest of the loans of the official sector in the Greek public debt, thus relieving the country of a headache in terms of the financial rules of the EU,” as Finance Minister Kostis Hatzidakis pointed out in a statement.

“Greece’s goal in these negotiations was to ensure the maximum possible combination of fiscal stability and economic development policies,” noted Hatzidakis. For Greece, the new fiscal rules are a success since the reduction of the public debt will be gradual, meaning an annual reduction of 4.5-5% in the coming years.