Commission VP says Greece’s ‘social dividend’ in line with memorandum

The Greek government’s decision to use part of a budget surplus to provide some relief to individuals who have been hardest hit by the crisis is not in violation of the terms of Greece’s bailout agreement with international creditors, the European Commission’s vide president said on Wednesday.

Speaking at the European Parliament’s Economic and Monetary Affairs Committee, Valdis Dombrovskis said that Greece’s efforts on the fiscal front have been “over performing” and surpassed the 1.75 percent surplus target, allowing the government to make some of this money available for social relief.

The European official also appeared upbeat about the prospect of Greece and its creditors wrapping up the third review of the current bailout in a timely manner, adding that “the Greek economy is rebounding.”

Dombrovskis also said that the Commission is working closely with Greek authorities to improve revenue collection mechanisms.