The assessment that brings the last tranche of bond earnings

By Tasos Dasopoulos

Support measures against precision and permanent interventions for 2023 will also be on the agenda of the first assessment of the economy after the exit of enhanced supervision in the autumn, since the Commission, due to the crisis, wants to closely monitor the spending of countries with high debt such as Hellas.

The exit from the regime of enhanced supervision will be publicly ratified with the decision of the European Commission not to extend the regime of enhanced supervision for another six months, as has happened periodically since the summer of 2018, when this special regime was also decided for Greece.

The financial staff has already received the letter co-signed by Commission Vice-President Valdis Dombrovskis and Commissioner for Economic Affairs Paolo Gentiloni, in which they confirm that they do not intend to continue the regime of enhanced supervision for Greece. However, after 12 + 1 successful evaluations, the exit from enhanced supervision from the 20th of the month is more formal than substantial.

At its most essential, the exit from enhanced supervision will have to be accompanied by a final assessment to be done in the framework of the European Semester, but its success will secure the last installment of €650m from bond earnings until and the end of time.

With this latest tranche, Greece will have received the total of 5.2 billion euros from profits that the ECB and other central banks had from Greek bonds which were bought and not refinanced, nor did they participate in the haircut of the Greek bonds, the known PSI.

This money was to be returned during the 2nd memorandum, but it ended… ingloriously in the summer of 2015. The institutions came back after the 3rd memorandum was completed and incorporated this money into the medium-term debt relief measures. And it was decided to pay them in six-monthly installments, the disbursement of which would be linked to the implementation of Greece’s commitments.

During the upcoming evaluation, the Greek side will have to analyze to the institutions its plans until the end of 2022, but also for the whole of 2023. So far, a new brave support package against precision has already been announced, with effect until within the next year and a cost that will reach 3 billion euros. This package, according to information, concerns the largest support for households in electricity tariffs, a new subsidy for fuel (the fuel pass 3 ) but also a new significant support for the approximately 2 million financially vulnerable citizens who received in April the “accuracy check” of 200 euros.

Also, the permanent interventions that Greece wants to make in 2023 in salaries and pensions will be analyzed in combination with the available fiscal space. In particular, the abolition of the special solidarity levy for the private and public sectors and the increase of pensions for approximately 700,000 pensioners have been launched. Also on the table is the definitive settlement of retroactive supplementary pensions and gifts that were cut from 2012 in implementation of the relevant decision of the CoE.

The “tails” of enhanced surveillance

At the same time, of course, the progress of the main issues on which the institutions give importance, the completion of which was delayed due to the pandemic, should also be examined.

The main topics are:

The overdue debts of the public. The European Commission expects at this stage the final settlement of overdue and non-awarded pensions until August and the payment of pensions and retroactives. In the clawback institution, the Commission expects to start the process to collect the remaining 30% of the total clawback (from pharmaceutical and diagnostic centers) for 2021 through installments to be agreed with the debtors by the end of July. Also, at least 35% of the 2022 clawback must be collected by October.

The NED liquidation. In the effort to definitively liquidate the non-performing loans there are two plus one main outstandings:

– To effectively proceed with the liquidation of the 30,000 pending insolvency cases of the old Katseli law. 95% of cases with rescheduled hearing dates should have a hearing date by the end of October. The remaining 5% will have a hearing date no later than the end of 2022. We should also have a final court decision on 25% of the cases set by the end of October.

– In the new bankruptcy law, until the end of September there should be a consultation with the private parties concerned about the new real estate management agency where the properties of households that declare “personal bankruptcy” will be transferred

– Also, until September 2022, the forfeitures of public guarantees for loans amounting to 470 million euros to individuals should be examined.

The rest of the reforms

In primary health care, secondary legislation for the system of electronic registration and appointments, as well as the registration of patients in the family doctor’s system, should be approved by June. The aim is to reach 25% of the total population registered in the system by the end of October and 50% by the end of 2022. Also, by the end of July self-employed family doctors will be registered in the system and should reach at a level that will allow at least 85% of the population to be covered by October.

In justice, the improved functionality of the electronic platform for issuing and managing records should be ensured and put into pilot operation by the end of June. The implementation of the measure will now be examined.

The approval of the forest maps in their final form is also a critical pending matter, so that the completion of the cadastral register, which is considered one of the key reforms that would be delayed due to the coronavirus pandemic, can proceed more quickly.

Finally, pending for the autumn there is also the codification of labor legislation which, of course, is also the responsibility of the Ministry of Labour.