Debate on the Ongoing negotiations on the first review of the Economic Adjustment Programme for Greece, during the EP plenary session (09-12 May 2016) in Strasbourg. Opening statements by Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs

Strasbourg

debate

plenary session

speech

economic situation in Greece (T)

MOSCOVICI, Pierre (PSE, FR, EC)

Ongoing negotiations on the first review of the Economic Adjustment Programme for Greece: extracts from the opening statements

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, So there was a first stage that we had on Sunday with the adoption of legislation which is important to reform the pension system and to unify and also reform the income post and just these two measures taken together will have an ongoing budgetary impact which is considerable because it is above 2 % of the Greek GDP and it will make the system more solid and more sustainable, more constructive and finally through this reform will make possible for all the pension funds and all the pensioners to have access to the same benefits.

SOUNDBITE (French), Pierre MOSCOVICI, For six years we have been carrying out these adjustments with one goal which is that the Greek economy could be healthier, that its public finances be more solid that competitiveness came back, that growth take off and that investors resume confidence in Greece because it is an open economy that needs foreign investment.

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, (on the contingency mechanism) We have to find the way of fulfilling the objective that is laid down by the Memorandum of Understanding (MoU) last summer, that is a primary surplus of 3.5% by 2018. Now the Commission believes that the measures already approved will be sufficient to achieve this objective of the primary surplus. But that is not the opinion of all the partners and the Commission has agreed with all the Members of the Eurogroup that it will be useful for this mechanism to exist in order to guarantee or to reassure all the partners of the credibility of the commitments. In other words, if this primary surplus was not achieved then we would have a mechanism ensuring that the necessary measures will be adopted in order to achieve it.

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, Greece, together with its partners, has already managed a lot of the path lead down last August but of course it hasn't t reached the finishing line yet.

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, It is planned that the European Stability Mechanism will pay an important amount for a fast payment of the state's backlogs to its debtors, to get it the economic growth going again and this will attenuate the effects of the tax adjustments, which of course could have partial recessive effects.

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, The viability of Greece's debt of Greece is a key element of the agreement reached last summer and I am very pleased that for the first time in the Eurogoup we had an open debate and constructive debate on this. The Commission is prepared to contribute in technical terms to these discussions in the future.

SOUNDBITE (French), Pierre MOSCOVICI, Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs, And after 24 of May I will meet with you again to discuss the comprehensive agreement which will show the path for the reforms that will make the possible a return to growth, a return to confidence and which will make possible again investments.