Euro Zone Ministers Discuss Greece’s Exit from International Bailout

Euro zone finance ministers have begun talks on Friday regarding Greece’s exit from the eight-year international bailout programs, eyeing the way by which Athens can boost economic growth and finish the remaining reforms it has agreed with its creditors.

“We will focus on the conclusion of the (bailout) program. We see good signs from Greece, definitely on the fiscal front,” said the chairman of euro zone finance ministers Mario Centeno upon entering the meeting.

Greece is now set to return to market financing on August 20. This comes after over eight years of living on inexpensive euro zone loan it obtained in exchange of painful reforms, following the investors’ refusal to lend to it in 2010 due to its growing debt and deficit.

Upon the end of the bailout, Greece will be free to construct its own economic policy. This is considered as a political turning point for Greece, which has been compelled to implement highly unpopular reforms. Such reforms were suggested by the euro zone and the International Monetary Fund.

However, before the bailout is finished, the country still needs to implement the final 88 changes over its economy. These are the last batch of reforms it has agreed to implement with euro zone creditors. These reforms include the liberalization of the energy market or privatization, which are difficult for the country.

“We are still waiting for some more decisions and some more actions from Greece but we are confident that we find an agreement…in June,” said French Finance Minister Bruno Le Maire prior to the meeting.

Without accomplishing those “prior actions,” Greece will not be able to get a big cash send-off from the euro zone in August. The country needs the money to keep it liquid in times of difficulties.

 Finance ministers from the 19 countries sharing the common currency are scheduled to discuss the progress of Greece in terms of the implementation of the reforms. The link between further debt help and economic growth as well as the fiscal policies will also be discussed by the finance ministers.

Meanwhile, many officials are still worried that Greek politicians will be under pressure to loosen up budget strings yet again, even if the country has transformed its 15 percent GDP budget deficit in 2009 into a 0.8-percent budget surplus last year.

“We must reflect on the design of a proper post-program surveillance which…shows that reforms are on track, that reforms are long-lasting, but that does not look and must not look as a forced program,” said Pierre Moscovici, European Commissioner for Economic and Financial Affairs.

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