Friday , July 1 2022

Pension fever on pensions – Critical EWG meeting on Thursday


"The situation is being evaluated and, as you know, there will be a Euro Group meeting on November 19, where the issue can be discussed," says ESM Chief Economist

Countdown started for pensions and the positive measures that the government intends to implement as a priority issue for citizens' relief. The consultation between the Greek authorities and the European Commission has already been intensified in recent years to complete the Greek budget for 2019, according to well-informed sources mentioned in the European Union Action Plan. The aim is, as stated, to reach a common position on Greece's budget margin next year, before the meeting of the EuroWorking Group on Thursday, which will be convened to prepare Eurogroup Monday, November 19th

On November 21, the final decisions

For the government's intentions, Eurozone Finance Ministers will be informed in the EuroWorking Group on Thursday, while on Monday the Eurogroup, where the main issue deepens the euro area, Greece will be discussed "if needed" as noted by the competent source, considering two days thereafter, 21 In November, the Commission will officially announce its opinion on all the Member States' budget proposals for the European Semester.

"We are in conversation"

ESM's chief economist, Rolf Strauss, also referred to the consultation on pensions. In particular, in an interview with the Cypriot newspaper Politis, Straush argued that no decision has been taken at the moment to cut or pensions. At this stage, the situation of the institutions is evaluated and the issue can be discussed Eurogroup by November 19, features features.

In particular, as regards the question of whether non-pensions in pensions are indications that Greece abandons reforms or if these cuts are no longer needed, since the country has achieved its budget goals, Strauss replied: "The situation is being evaluated by the EU institutions and as you know There will be a Euro Group meeting on November 19, where this issue can be discussed. We are following the situation closely. It is also important that the commitment to achieving a 3.5% primary surplus is not questioned by anyone in the Greek government – so it is also positive. However, there is agreement that previous commitments with the ESM program should be respected or discussed with the institutions. We are now in this process. "

"Greece can return to markets"

At the same time, Strauss is convinced that our country can return to the markets as long as it continues to implement the agreed reforms. "I am convinced that Greece will have access to markets as long as it continues to implement the agreed reforms. We have formulated the best possible conditions for this, with reforms that will help improve the country's economy and also debt mitigation. The result is saving Greece a lot of money. With the cash pillow, the Greek government does not need to run on the markets. I am very convinced that Greece's public debt management agency is doing the best and has an appropriate strategy to regain access to markets. The cash pillow offers investor comfort and allows the government to resort to markets only when appropriate. "

Asked whether the cash pillow could be used to support the Greek banking system, ESM's chief economist replied that it was introduced to repay the central government debt. "For other purposes, all ESM members must agree," he added.

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Eurogroup ESM Reductions in pensions

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