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Eurogroup statement on Greece – Full Text

Below is the full text of the Eurogroup common statement as agreed by Greece and its euro zone partners. The statement details the 4-month extension of the loan agreement (MFAFA) and the conditions Greece has to fulfill until the end of April 2015. But first of all, Greece has to submit a list with specific measures until next Monday, February 23rd. “Then we’ll have a deal,” IMF chief Christine Lagarde said in a press conference following the eurogroup meeting.


20. February 2015

The Eurogroup reiterates its appreciation for the remarkable adjustment efforts undertaken by Greece and the Greek people over the last years. During the last few weeks, we have, together with the institutions, engaged in an intensive and constructive dialogue with the new Greek authorities and reached common ground today.

The Eurogroup notes, in the framework of the existing arrangement, the request from the Greek authorities for an extension of the Master Financial Assistance Facility Agreement (MFFA), which is underpinned by a set of commitments. The purpose of the extension is the successful completion of the review on the basis of the conditions in the current arrangement, making best use of the given flexibility which will be considered jointly with the Greek authorities and the institutions. This extension would also bridge the time for discussions on a possible follow-up arrangement between the Eurogroup, the institutions and Greece.

The Greek authorities will present a first list of reform measures, based on the current arrangement, by the end of Monday February 23. The institutions will provide a first view whether this is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review. This list will be further specified and then agreed with the institutions by the end of April.

Only approval of the conclusion of the review of the extended arrangement by the institutions in turn will allow for any disbursement of the outstanding tranche of the current EFSF programme and the transfer of the 2014 SMP profits. Both are again subject to approval by the Eurogroup.

In view of the assessment of the institutions the Eurogroup agrees that the funds, so far available in the HFSF buffer, should be held by the EFSF, free of third party rights for the duration of the MFFA extension. The funds continue to be available for the duration of the MFFA extension and can only be used for bank recapitalisation and resolution costs. They will only be released on request by the ECB/SSM.

In this light, we welcome the commitment by the Greek authorities to work in close agreement with European and international institutions and partners. Against this background we recall the independence of the European Central Bank. We also agreed that the IMF would continue to play its role.

The Greek authorities have expressed their strong commitment to a broader and deeper structural reform process aimed at durably improving growth and employment prospects, ensuring stability and resilience of the financial sector and enhancing social fairness. The authorities commit to implementing long overdue reforms to tackle corruption and tax evasion, and improving the efficiency of the public sector. In this context, the Greek authorities undertake to make best use of the continued provision of technical assistance.

The Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely.

The Greek authorities have also committed to ensure the appropriate primary fiscal surpluses or financing proceeds required to guarantee debt sustainability in line with the November 2012 Eurogroup statement. The institutions will, for the 2015 primary surplus target, take the economic circumstances in 2015 into account.

In light of these commitments, we welcome that in a number of areas the Greek policy priorities can contribute to a strengthening and better implementation of the current arrangement. The Greek authorities commit to refrain from any rollback of measures and unilateral changes to the policies and structural reforms that would negatively impact fiscal targets, economic recovery or financial stability, as assessed by the institutions.

On the basis of the request, the commitments by the Greek authorities, the advice of the institutions, and today’s agreement, we will launch the national procedures with a view to reaching a final decision on the extension of the current EFSF Master Financial Assistance Facility Agreement for up to four months by the EFSF Board of Directors. We also invite the institutions and the Greek authorities to resume immediately the work that would allow the successful conclusion of the review.

We remain committed to provide adequate support to Greece until it has regained full market access as long as it honours its commitments within the agreed framework.

via official website of the Eurogroup

For the next 4 months, to priorities on  Greece’s TO DO list are:

combat tax evasion and corruption,

improving the efficiency of the public sector

no measures and unilateral actions that would negatively impact fiscal targets, economic recovery or financial stability.

Very positive is the flexibility of the Primary Surplus target of  3% for 2015. Now the PS target will take the economic circumstances into account. In 2014, Greece could not meet the target of 1.5%.

Another positive thing is that the former Troika – now Institutions – will not dictate their commands but Greek officials will travel to Brussels.

PS No bad at all 🙂

the original text


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  1. Wonderful document. Like beauty, it is in the eye of the beholder. I don’t think that Greeces interpretation will be the same as Germany’s.
    Under the old terms Greece will be no better off in three hundred years . They must renegotiate the deal.

    • exactly! its like religion – everyone has their own interpretation!
      this will go nowhere…the sooner they pull the plug on repayment, the better.

  2. Tsipras blinked and it is a good decision. He should have done it, the risk was too big – and Greece had too much to lose in case of a disorderly exit. I hope nobody believes that the primary surplus can be 4 % – this is one crucial point where Tsipras is right (but I still think that promises are just promises…)
    OK, with privatizations he is right , too. Not because privatization is bad, but because the prices he would get now , when the country is still in depression, are too low. So somehow – at least one sees the logic in his actions, and it is important.
    He can still negotiate strongly – he has time now.

  3. Here’s a little prediction. Greece will supply the list, which will be rejected out of hand. Probably without even reading it. Then a lot more posturing, giving the politicians time and wiggle room to save face. By 28/02 (which is the real dead line)a proper agreement will have been hammered out, wolfie willing. If not, those less equal in the EU will then know exactly where they stand, and should do the only reasonable thing left to do. Turn away and close the door after them. The lights will switch themselves off…

  4. 4 months to print and distribute Drachmas, conclude agreements whith the Eurasic Union, in particular, Russia and China, set up ties with the new russian SWIFT, then – Bye, Bye Euro and, as Nuland said, F** the EU!

    • I would be thinking along the same sort of lines.There has been enough rearranging of deck chairs on the sinking EU ship. In the end, there will be no life boats of life jackets for the less equal passengers, that much is very obvious…