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EUROPEAN COMMISSION

Brussels, 14 August 2015

 

14

Report on Greece's compliance with the draft MOU commitments and the commitmentsin the Euro Summit statement of 12 July 2015

 

Main Findings

 Greece has requested support from its European partners, to restore sustainable growth, create jobs,reduce inequalities, and address the risks to its own financial stability and to that of the euro area. AMemorandum of Understanding (MoU) has been prepared in response to a request of 8 July 2015 fromthe Hellenic Republic to the Chairperson of the Board of Governors of the European StabilityMechanism (ESM) for stability support in the form of a loan with an availability period of three years.The Euro Summit of 12 July stressed the crucial need to rebuild trust with the Greek authorities. TheMoU outlines a set of prior actions for a first disbursement under the ESM programme, which followson from two sets set of measures already adopted by the Greek authorities on 16 and 22 of July 2015.This report assesses compliance with the prior actions. It was compiled by European Commission staff,in liaison with ECB staff.This report provides an assessment of the 58 prior actions identified in the MoU or related to thecorrection of legislation passed on 16 or 22 July.Pending a final version and translation of the legislation passed in the morning of 14 August 2015 (the"Omnibus law"), this report assesses that the received legislation broadly complies with the prioractions identified in the draft MoU. The prior actions include measures that (i) reverse most policyroll-backs of recent months, (ii) amend and complete some reforms in the package of measuresadopted on 15 and 22 July 2015, and (iii) are covered in the main chapters of the MoU. This includesimportant reforms on fiscal measures, revenue collection, pension and health systems, competition in product market reforms including energy, and in regulated professions, and insolvency codes.The institutions consider that, in some areas, further steps are needed to clarify and implement theadopted measures, or to complete the actions. Also, there is a need for further corrections of legislationadopted over the past months, but which still required technical work before being adopted, or oflegislation passed as part of the package of prior actions, to ensure full consistency with reforms agreedwith the institutions. In the absence of overriding technical constraints, all of these actions should becompleted by September 2015.

Action 1 - Gradually abolish the refund of excise duty on diesel oil for farmers in two equal steps inOctober 2015 and October 2016 

 The Omnibus law (subparagraph D5) reduces the subsidy to

 €

200 per l000 litres from 1 October 2015and to 0 from 1 October 2016. However, the text does not make it entirely clear that the diesel oilsubsidy will be fully repealed as of October 2016.

DONE

 – 

 pending further clarification

 

2.1 FISCAL POLICY