COUNCIL OF THE EUROPEAN UNION interesting latest

PRESS Eurogroup    21/6/2018  Eurogroup statement on the occasion of its 20th anniversary Today, the Eurogroup commemorated its first meeting 20 years ago in Luxembourg.  Established by the EU leaders shortly before the introduction of the euro, the Eurogroup is an informal body where euro area countries’ finance ministers meet to discuss issues related to the single currency. One of the greatest achievements of European integration, the euro has become a tangible part of the European identity. Since its inception it has grown both in membership and strength, enjoying the robust support of around 340 million people in 19 euro area countries. As the world's second most-used currency, it reinforces Europe's presence on the global scene. The euro has strengthened the internal market, providing an anchor for the economy: citizens and firms across Europe benefit from stable prices and conduct their business across national borders with unprecedented ease. The Eurogroup's commitment, helped the euro area to withstand the worst financial and economic crisis since the Great Depression. Lessons have been learnt: economic imbalances are better addressed, coordination was strengthened, and new common institutions were built to complement the monetary union and make it more resilient. European citizens never lost confidence in their currency; their currency does not fail them.  At present, with all euro area member states are experiencing economic growth and. s new and more rewarding jobs being added, we need to ensure that these gains will be shared among ever more citizens.  To ensure that the Economic and Monetary Union is well equipped to handle future challenges and to improve convergence, the Eurogroup is determined to continue promoting the implementation of sound national policies and to further develop common policies and tools. These are – more than ever – matters of our shared interest in today's rapidly evolving world.  The Eurogroup will pursue ambitious and forward-looking national and European policies that foster strong and equitable growth, investment and employment – delivering lasting prosperity for all.  The Eurogroup remains united in its unwavering political commitment to this common cause – the euro.

PRESS Eurogroup    22/6/2018  Eurogroup Statement on the updated Draft Budgetary Plans of Spain for 2018 The Eurogroup welcomes Spain's submission of an updated Draft Budgetary Plan (DBP) for 2018, as requested in its statement of 4 December 2017, as well as the Commission Opinion issued on 23 May 2018.  We agree with the Commission Opinion that the draft budget of Spain is broadly compliant with the requirements of the corrective arm of the Stability and Growth Pact (SGP). Based on the Commission forecast, the headline balance is expected to be below 3% of GDP in 2018, but above the target set by the Council. Spain's structural balance is expected to deteriorate in 2018 based on the Commission forecast.  The Eurogroup invites Spain to ensure compliance with SGP provisions within the national budgetary processes and welcomes its commitment to take any necessary measures.  The Eurogroup recalls that in its December 2017 statement it raised concern about the limited structural fiscal adjustment expected in 2018 in some Member States in the context of favourable economic conditions, whilst noting the persistence of legacies from the crisis in some areas.  We will continue to monitor euro area Member States' fiscal and economic policies, as well as the budgetary situation of the euro area as a whole. Having difficulty reading this email? View it online PRESS Council of the European Union    21/6/2018 Leave and flexible work for parents and carers: Council agrees general approach on the draft directive on work-life balance On 21 June 2018, the Council agreed its negotiating position (general approach) on the directive on work-life balance for parents and carers. On the basis of this mandate, the Council Presidency will start negotiations with the European Parliament once the latter has adopted its position. "Men and women throughout Europe should be able to fulfil their full potential, both at work and in their family lives. With this directive, the EU will make it easier for men and women to share the joys and burdens of parenting or caring for relatives while continuing to pursue a career." Biser Petkov, Minister for Labour and Social Policies The aim of this proposal is to improve access to work-life balance arrangements, such as leave and flexible working arrangements for parents and carers. It should boost the take-up of family-related leave by men, which will help increase female labour market participation. The directive would introduce new minimum standards on paternity leave, with fathers or second parents being able to take at least 10 working days of leave around the time of the birth of the child, paid at a level defined by the member state concerned. It would also update the minimum standard on parental leave, keeping the existing individual right of 4 months but with 2 non-transferable months, with at least 1.5 months to be paid at a level set by the member state concerned. The directive would introduce an individual right to carers' leave, previously not recognised at EU level. It would also extend the right to request flexible working arrangements for parents, until the child is at least 8 years old, as well as for carers. Parents and carers could ask, for example, for flexible working hours or working patterns and for the right to work remotely. Council of the European Union    21/6/2018  Coordination of social security systems: Council agrees general approach On 21 June 2018, the Council agreed its negotiating position (general approach) on the coordination of social security systems (revision of regulations 883/2004 and 987/2009). On the basis of this mandate, the Council Presidency will start negotiations with the European Parliament once the latter has adopted its position. "The coordination of social security systems plays a key role in ensuring that the free movement of people works in practice. This update of the rules will make them clearer, fairer and easier to enforce." Biser Petkov, Minister for Labour and Social Policies The revision of the regulations on coordination of social security systems aims at modernising the rules by bringing them in line with the development of national social security systems, as well as making them clearer, fairer and simpler to enforce. This will make it easier for people to move freely within the EU. The draft amending regulation focuses on five areas: unemployment benefits, long-term care benefits, access to benefits for economically inactive persons, family benefits and applicable legislation for posted workers and persons working in two or more member states. It also includes a number of other smaller amendments. On unemployment benefits, the draft amending regulation updates rules on aggregation, exportability and the coordination of unemployment benefits for frontier and cross-border workers: It allows for member states to extend the period jobseekers are allowed to export their unemployment benefits up to the end of the period of their entitlement to benefits, instead of the current limit of 6 months. It encourages a closer tie between the labour market of the member state responsible for providing unemployment benefits and the unemployed person by allowing member states to require someone to work for at least one month on their territory before aggregating the previous periods they worked prior to claiming unemployment benefits. Otherwise the member state in which that person worked earlier, if they worked there for at least one month becomes responsible for aggregation. It establishes a closer link between the labour market of the member state responsible for providing unemployment benefits and the unemployed person by switching the member state responsible for paying unemployment benefits from the member state of residence to the member state of last employment if the person worked there for at least 3 months. The draft amending regulation reflects the impact of the aging society and the increasing role long term-care benefits play in national social security systems. In order to increase legal certainty, it clarifies the rules under which long-term care benefits can be coordinated. A stable regime for long-term care benefits coordination will contribute to facilitating the mobility of those in need of long-term care and persons caring for them. Changes regarding family benefits aim to promote shared child raising responsibilities and remove potential financial disincentives for parents who reduce their working hours to take care of their child during the same period. The proposal distinguishes between family benefits in cash intended to replace income not earned due to child-raising and all other family benefits. On applicable rules for posted workers, the proposed changes aim to ensure legal clarity and combat fraud by introducing: a period of prior affiliation and a time period between consecutive postings, as being at least 3 months and at least 2 months respectively clear criteria for determining the location of the registered office or place of business of the employer of a posted worker the possibility for retroactive withdrawal or rectification of a document in case of fraud or error On access to benefits for economically inactive persons, the draft amending regulation aims to ensure legal clarity by referring to relevant recent case law. Council of the European Union    21/6/2018  Transparent and predictable working conditions: Council reaches general approach On 21 June 2018, the Council agreed its negotiating position (general approach) on the directive on transparent and predictable working conditions. On the basis of this mandate, the Council Presidency will start negotiations with the European Parliament once the latter has adopted its position. "New ways of working can bring many advantages to both workers and the economy. However, we have to make sure that we are also able to address any issues which may arise. This draft directive defines a number of minimum rights for workers as part of the response to the challenges of these new forms of employment." Biser Petkov, Minister for Labour and Social Policies This draft directive addresses challenges brought by developments in the world of work, including  growing flexibilisation of the labour market and, in particular, the increase in the number of 'non-standard' forms of employment, such as temporary employment, part-time and on call work, zero hours contracts, on demand and multi-party employment. New forms of employment are often not as regular or stable as traditional employment relationships, and can lead to reduced predictability for the workers concerned, creating uncertainty over applicable rights and social protection. It can even lead to situations where the workers are put in a very dependant and precarious situation, with uncertainty as to when and if they will work the next day. The draft directive includes revised obligations to inform workers of the essential aspects of their work, in a written form and in a timely manner. The timing for the receipt of this information has been reduced from two months to a week for initial basic information, and at last a month after the first working day for the rest of the information. This includes information on the place of work, type of work, working time, remuneration, amount of paid leave, the institution receiving the social security contributions, training entitlement, and the procedure for terminating employment. One of the novelties is that if the worker's work pattern is unpredictable, the employer will still have to indicate the reference period in which the worker may be required to work and the minimum advance notice. A number of minimum rights for workers are also defined, including the right: to limit to 6 months the duration of the probationary period at the beginning of the job to take up another job with a different employer in parallel to know reasonably in advance when work will take place to ask for a more secure job and receive a written reply from the employer to receive mandatory training cost-free Council of the European Union 21/6/2018 Main results - EU-Armenia Partnership Council, 21/06/2018 The first Partnership Council discussed EU-Armenia relations; the EU-Armenia comprehensive and enhanced partnership agreement and priorities of the EU-Armenia partnership; and economic, trade and sectoral cooperation. A joint press statement was issued after the meeting. Council of the European Union    21/6/2018 Posting of workers: Council adopts the directive On 21 June 2018, the Council adopted the revision of the posting of workers directive. The aim of the revised directive is to facilitate the transnational provision of services, whilst ensuring fair competition and respect for the rights of those workers who are employed in one member state and sent to work temporarily in another by their employer (posted workers). More specifically, the directive aims at ensuring fair wages and a level playing field between posting and local companies in the host country whilst maintaining the principle of free movement of services. Revised directive on posted workers Posting of workers (background information)

Eurogroup, 21/06/2018:all about....

PRESS

Eurogroup    22/6/2018  Remarks by M. Centeno following the Eurogroup meeting of 21 June 2018 Good evening. Thanks for your patience. It was long session today. In some meetings you advance the agenda, in others you take leaps forward. This was a Eurogroup to remember. First set of good news is Greece. After eight long years, Greece will finally be graduating from its financial assistance. Greece joins Ireland, Spain, Cyprus and my own country Portugal, in the ranks of euro area countries that turned around their economies and once again stand on their own feet. A success story of programme implementation. Today the institutions confirmed Greece has implemented all the 88 prior actions under the fourth and final review. This shows Greece has successfully completed its ESM programme. This is it! We have managed to deliver a soft landing of this long and difficult adjustment. There will be no follow-up programme in Greece. Altogether, Greece adopted over 450 policy actions during this ESM programme alone. Many more, if we include previous programs, often including hardship for the population. This was also a tour-de-force for the Eurogroup. Three fully-fledged programs, over 240 billion euros disbursed at low interest rates. Since 2010, it is hard to recall a Eurogroup where Greece was not discussed. Today we can say that Greece delivered and the Eurogroup also did its part of the bargain. Debt sustainability analysis provided by the institutions showed that further debt relief was needed to make Greek debt sustainable in the future. We have published a statement that contains all the details of our agreement today, including debt relief. Let me give you a few highlights. The end of this programme brings new responsibilities. Through its long-term growth plan, Greece is committed to preserve its programme achievements. This includes completing the reforms that were enacted under the programme and continue to implement further reforms, with the aim of increasing its growth potential. We call this ownership – and it is key to secure Greece’s immediate future and to maintain investor confidence in the Greek economy. Second, we have agreed on a debt relief package to safeguard Greece’s debt sustainability. They include substantial upfront measures such as a 10 year extension on EFSF loans and 10 year deferral on interest and amortization. This will allow Greece to return to market financing, issuing bonds across the maturity curve. Greece will furthermore be able to retrieve the interest accumulated by the Euro-system on Greek government bonds. Greece will receive these semi-annual payments until 2022, if it implements all key reforms adopted under the ESM programme. The institutions will monitor this via the so–called "Enhanced Surveillance" that will be activated in the next few weeks. The IMF will actively participate in this monitoring. Finally, we have mandated the ESM to disburse 15 billion euros to Greece as the last program tranche, subject to the completion of national procedures. Overall, Greece will be leaving the programme with a sizeable cash buffer of 24.1 billion euros covering the sovereign financial needs in the next 24 months. This represents a significant backstop against any foreseeable risk. With all these measures, we can safely say based on the DSA of the institutions that Greek debt is sustainable going forward. And for the future, we reaffirmed our commitment to continue to support Greece and its people in its reform efforts to stay the course of sustainable growth.  Greece was not the only item on the agenda, we heard from the institutions good news also regarding Cyprus’s most recent economic developments.  Today we also reviewed the updated draft budgetary plan of Spain, which is broadly compliant with the Stability Pact. We agreed on our work programme for the next six months and, of course, welcomed the new Ministers from Spain and from Italy, who explained their policy priorities and re-iterated their countries' commitments to our common policies and objectives.  The IMF presented its article IV on the euro area. They concur that the euro area is now at a historic juncture. All adjustment programmes are behind us. The euro came out stronger from this crisis but it is still unfinished business. Our current broad-based economic growth makes this the right time to make decisive progress at the national level and at the European level. This was the message from the last euro summit and it is also a message that was amplified today by Managing Director Christine Lagarde, who joined us today.  Then we expended the room to include the 27 countries and continued the meeting in extended format. This sense of urgency for action was the reason why our leaders asked the Eurogroup back in December to work on steps for deepening the EMU, focusing on the banking union and reinforcing the ESM. To use the recovery momentum to strengthen the euro. In this discussion, we have included non-euro area members because of implications on the future of the euro. Today we delivered on these discussions in order to inform the Euro summit, next week in Brussels. A few days ago the French and the German governments made an important contribution to this debate. This commitment among key members of our Union is a clear demonstration of political will, which is the crucial ingredient to protect the euro against future crises.  Today we took these discussions up another level on several fronts. Let me go through the main areas of progress. On Banking Union, efforts made in the past year to increase resilience and reduce risks are paying off. A fact-based report by the Single Resolution Board, European Commission and Single Supervisory Mechanism that I asked for in the last Eurogroup found that risks are receding in the banking sector in Europe. At the same time, we all acknowledge that continued work will be needed, in particular in further reducing the amount of bad loans in banks’ balance sheets. We broadly support a gradual approach whereby risk reduction and risk sharing measures are taken in the appropriate sequence. First, the Council agreement on the banking package and the indicators to measure progress with risk reduction allow for a decision on the ESM as backstop to the Single Resolution Fund. This means setting up a credible safety net for the banking sector. This is a very concrete step which will be implemented as part of a broader reform of the mechanism. Second, after the European Council in June, the work on a roadmap for beginning political discussions on EDIS could start. Finally, we agree to act decisively on the Anti-Money Laundering front.  Moving on to crisis management, there is broad support to strengthen the role of the ESM. This would equip the euro area with better crisis resolution tools. As I said earlier, we support entrusting the common backstop for bank resolution to the ESM. This will be part of a broader reform package. The backstop could become available before the end of the transitional period. That can happen if significant progress has been achieved in risk reduction. Its size would be aligned with the target level of the SRF. Effectively we support doubling our firepower for bank resolution.  ESM reform however, does not end here. First, on the role of the ESM, we agree that a reinforced ESM should take a stronger role in designing and monitoring programmes without duplicating the role of the Commission. Second, on the ESM toolkit, we agree to review the existing instruments, in particular the precautionary tools, and assess the need for new instruments. On debt sustainability issues, there are still a range of views in the room.  Going forward, in terms of deliverables, the Eurogroup will prepare by the end of the year an outline of the key features of a strengthened ESM covering all the issues I have just mentioned. In a later stage, we could prepare the necessary changes to the ESM treaty and guidelines.  Finally, it is clear that our discussions are less advanced on possible fiscal instruments for convergence and stabilisation in the EMU. Subject to guidance by leaders next week, possible avenues to be explored could be a euro area budget for competitiveness, convergence and stabilisation purposes. We could also examine a European unemployment insurance fund for cases of severe economic crises.  Making a long story short: we have chosen to provide a credible safety net for the banks; we have set the right incentives for banks to continue deleveraging risks; we have decided to beef up the ESM to reinforce our lines of defence. The question is no longer if, or how we will complete the economic and monetary union. The question is when? And the answer we gave today is that we start now. This is the message I will deliver to our leaders for the Summit next week. Eurogroup 22/6/2018  Main results - Eurogroup, 21/06/2018 The Eurogroup agreed on the surveillance framework that will apply after the end of Greece's economic adjustment programme, the size of the final tranche of financial support by the ESM, debt measures and fiscal targets. The Eurogroup in inclusive format focused on further steps for deepening EMU and the completion of the banking union. The Eurogroup meeting took place in two formats: a regular meeting of the euro area ministers, and a meeting of the ministers of 27 EU member states to discuss the future of the Economic and Monetary Union. 15.00 - Eurogroup meeting in regular format Greece's economic adjustment programme The Eurogroup discussed the fourth (and the final) review of Greece's economic adjustment programme and agreed on the elements to support Greece's successful exit from the programme in August this year. It adopted a statement outlining the agreement, which includes the surveillance framework that will apply after the programme, the size of the final tranche of financial support by the ESM, debt measures and fiscal targets. Eurogroup statement on Greece, 22 June 2018 Factsheets - A new chapter for Greece (European Commission) Timeline: the third financial assistance programme for Greece (background information) Eurogroup statement on Greece (press release, 25/5/2016) Eurogroup statement on Greece (press release, 15/6/2017) IMF Article IV consultation with the euro area The Eurogroup exchanged views on the International Monetary Fund's (IMF) presentation of the outcome of its Article IV consultation with the euro area. The IMF is expected to publish the final report shortly. This year, the consultation focused on national and European-level policies aimed at protecting the euro area economy from future shocks. The IMF carries out such consultations every year with all of the IMF members, both individual countries and currency regions, including the euro area. This is done in accordance with Article IV of the IMF's Articles of Agreement. Articles of Agreement of the International Monetary Fund Updated draft budgetary plan of Spain The Eurogroup exchanged views and adopted a statement on Spain's updated draft budgetary plan for 2018. Eurogroup Statement on the updated Draft Budgetary Plans of Spain for 2018 (press release, 22 June 2018) Commission opinion on the updated draft budgetary plan of Spain Commission Staff Working Document: Analysis of the updated draft budgetary plan of Spain Cyprus: post-programme surveillance The European Commission and the ECB informed the Eurogroup of the main findings of their fourth post-programme surveillance mission to Cyprus that took place between 19 and 23 March 2018. The ESM presented the findings related to its early warning system; the IMF conducted its second post-programme monitoring mission at the same time. The aim of the post-programme surveillance is to establish any possible risks to the country's ability to repay loans received under its earlier adjustment programme. The surveillance continues until at least 75 % of the loan has been repaid. Statement by the staff of the European Commission and the European Central Bank following the fourth post-programme surveillance (PPS) mission to Cyprus FAQ on the ESM Early Warning System Eurogroup work programme for the second semester of 2018 The Eurogroup adopted its work programme for the second half of this year. Eurogroup work programme for the second half of 2018  Other items on the agenda Italy's Minister of Economy and Finance, Giovanni Tria, and Spain's Minister of Economy, Industry and Competitiveness, Nadia Calviño, presented the policy priorities of their respective governments. This is standard practice in the Eurogroup when new governments come into office. Eurogroup members gallery 18.30 - Meeting of 27 member states Preparation of the June Euro Summit: deepening of the Economic and Monetary Union (EMU) The Eurogroup met in inclusive format to prepare the Euro Summit of 29 June 2018. The discussion focused on the further steps for the banking union and the reform of the European Stability Mechanism. Ministers also touched upon fiscal issues, including proposals on a possible euro area fiscal capacity. Euro Summit, 15 December 2017 Euro Summit, 23 March 2018 Euro Summit, 29 June 2018 Council Conclusions on a roadmap to complete the Banking Union (17/6/2016) Meeting information Luxembourg   21/06/2018 Preparatory documents Draft annotated Eurogroup agenda 21 June 2018 Draft annotated Eurogroup agenda in inclusive format 21 June 2018 Outcome documents Eurogroup list of participants  Eurogroup inclusive format list of participants Press releases Remarks by M. Centeno following the Eurogroup meeting of 21 June 2018 23/06/2018, 02:20 Eurogroup statement on Greece of 22 June 2018 22/06/2018, 01:22 Eurogroup Statement on the updated Draft Budgetary Plans of Spain for 2018 22/06/2018, 01:10 Eurogroup statement on the occasion of its 20th anniversary 21/06/2018, 13:00

PRESS Eurogroup      22/6/2018 Eurogroup statement on Greece of 22 June 2018 Completion of the fourth and final review and growth strategy The Eurogroup commends the Greek authorities for the completion of all the agreed prior actions of the final review of the ESM programme. We congratulate the Greek authorities and Greek people for the successful conclusion of the ESM programme. The Eurogroup acknowledges the significant efforts made by the Greek citizens over the last years. Greece is leaving the financial assistance programme with a stronger economy building on the fiscal and structural reforms implemented. It is important to continue these reforms, which provide the basis for a sustainable growth path with higher employment and job creation, which in turn is Greece's best guarantee for a prosperous future.  The Eurogroup welcomes the commitment of the Greek authorities to continue and complete all key reforms adopted under the ESM programme and to ensure that the objectives of the important reforms adopted are safeguarded. We also welcome the finalization of a comprehensive growth strategy by the Greek authorities. This strategy, which aims at enhancing Greece's long-term growth potential and improving the investment climate, underlines the Greek ownership of the reform process following the ESM programme. The Eurogroup further welcomes the signature of a 'Cooperation and Support Plan' between the Greek authorities and the European Commission's Structural Reform Support Services, which provides the continued provision of technical assistance to support reform implementation in the coming years. DSA and primary surplus The Eurogroup returned to the sustainability of Greek debt on the basis of an updated debt sustainability analysis provided by the European institutions. The implementation of an ambitious growth strategy and of prudent fiscal policies will be the key ingredients for debt sustainability. In this context the Eurogroup welcomes the commitment of Greece to maintain a primary surplus of 3.5% of GDP until 2022 and, thereafter to continue to ensure that its fiscal commitments are in line with the EU fiscal framework. Analysis of the European Commission suggests that this will imply a primary surplus of 2.2% of GDP on average in the period from 2023 to 2060. The Eurogroup recalled the assessment of debt sustainability with reference to the agreed benchmarks for gross financing needs: GFN should remain below 15% of GDP in the medium term and below 20% of GDP thereafter while ensuring that debt remains on a sustained downward path. The Eurogroup stressed the importance of basing its assessment on realistic and cautious assumptions, taking into account compliance with the EU fiscal framework and the impact of growth enhancing reforms and investment initiatives. The Eurogroup agreed to implement, in addition to the short-term debt measures already in place, the following medium-and long-term debt measures in order to ensure that the agreed GFN objectives are respected also under cautious assumptions. For the medium term, this includes the following upfront measures: The abolition of the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek programme as of 2018. The use of 2014 SMP profits from the ESM segregated account and the restoration of the transfer of ANFA and SMP income equivalent amounts to Greece (as of budget year 2017). The available income equivalent amounts will be transferred to Greece in equal amounts on a semi-annual basis in December and June, starting in 2018 until June 2022, via the ESM segregated account and will be used to reduce gross financing needs or to finance other agreed investments. The two measures mentioned above are subject to compliance with policy commitments and monitoring, as outlined below. A further deferral of EFSF interest and amortization by 10 years and an extension of the maximum weighted average maturity (WAM) by 10 years, respecting the programme authorized amount. We agreed that based on a debt sustainability analysis to be provided by the European institutions, the Eurogroup will review at the end of the EFSF grace period in 2032, whether additional debt measures are needed to ensure the respect of the agreed GFN targets, provided that the EU fiscal framework is respected, and take appropriate actions, if needed. The Eurogroup will take into account a positive assessment in the post programme surveillance, particularly in the fiscal area and economic reform policies. In this context, for the long term, the Eurogroup also recalled the May 2016 agreement on a contingency mechanism on debt which could be activated in the case of an unexpectedly more adverse scenario. If activated by the Eurogroup, it could entail measures such as a further re-profiling and capping and deferral of interest payments of the EFSF to the extent needed to meet the GFN benchmarks defined above. Post programme surveillance framework The Eurogroup stressed that debt relief measures should include incentives to ensure a strong and continuous implementation by Greece of the reform measures agreed in the programme. To ensure the market credibility of the package of debt measures, we agreed that policy commitments related to the programme will be linked to the return of SMP-ANFA income equivalent amounts as well as to the abolition of the step-up interest rate margin up to 2022. In this context, the Greek authorities have made specific policy commitments, as set out in the annex, to complete key structural reforms initiated under the ESM programme (including commitments to complete actions whose implementation is not fully in the hands of government) against agreed deadlines and made a general commitment to continue the implementation of all key reforms adopted under the ESM programme.  The Eurogroup welcomes the intention of the European Commission to activate the Enhanced Surveillance procedure in the coming weeks and also the support for this approach by the Greek authorities. The quarterly reports under Enhanced Surveillance will enable closer monitoring of the economic, fiscal and financial situation and the post programme policy commitments and will serve as a basis for the Eurogroup to agree on the return of SMP-ANFA income equivalent amounts and the cancellation of the step-up interest margin on EFSF. ELSTAT /COEX We recalled that the ongoing legal proceedings against the members of the Committee of Experts (CoEx) of TAIPED are a matter of very serious concern and we reaffirm our full confidence in the work of the experts, which was also confirmed by the Hellenic Court of Auditors. Preoccupations also concern the proceedings against the former President and senior staff of ELSTAT, notably as regards the alleged falsification of fiscal data. The Eurogroup continues to have full confidence that the data validated by Eurostat and delivered by ELSTAT since 2010, including the 2009 general government balance outturn, is in compliance with the rules that are applied in all Member States. The Eurogroup mandates the institutions to continue monitoring the developments in those cases and the supporting actions taken by the Greek authorities, including legislative actions if needed, for instance strengthening the independence of ELSTAT, in full respect of the independence of the judiciary, and report back to the Eurogroup in the context of the post programme surveillance.  Disbursement and cash buffer Subject to the completion of national procedures, the ESM governing bodies are expected to approve the disbursement of the fifth and last tranche of the ESM programme amounting to EUR 15 bn. Out of this total amount, EUR 5.5 bn will be disbursed to the segregated account, to be used for debt servicing and EUR 9.5 bn will be disbursed to a dedicated account set up to build up cash buffers, to be used for debt service in case of needs. Such an account will be subject to appropriate safeguards and any possible future utilization of its funds for an efficient debt management will be agreed by the Greek authorities with the ESM/European institutions. Overall, Greece will be leaving the programme with a sizeable cash buffer of EUR 24.1 bn covering the sovereign financial needs for around 22 months following the end of the programme in August 2018, which represents a significant backstop against any risks. IMF Participation The IMF management welcomed the successful implementation of the ESM programme and the further specification of the debt measures given today by Member States. Although the Fund's own Stand-By Arrangement (SBA) can no longer be activated, the IMF confirmed its continued involvement in Greece in the post-programme surveillance framework alongside the European Institutions. Finally, we also reaffirmed our commitment to continue to support Greece in its reform efforts to return to sustainable growth. Annex: Specific commitments to ensure the continuity and completion of reforms adopted under the ESM programme

Statement by IMF Managing Director Christine Lagarde on Greece

Statement by IMF Managing Director Christine Lagarde on Greece

June 21, 2018

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today at the conclusion of the Eurogroup meeting in Luxembourg:

“We commend Greece and its European partners on the completion of the fourth and final review under the European Stability Mechanism (ESM) program. The additional debt relief measures announced today will mitigate Greece’s medium-term refinancing risks and improve its medium-term debt prospects, both of which are very welcome results. This will be good for Greece and good for the euro area.

“We also take note of the commitment by Greece’s European partners to keep debt sustainability under review and to take additional debt relief measures if needed. This would provide important safeguards if the more optimistic long-run macroeconomic assumptions of the European institutions were not realized.

“We will examine the sustainability of Greece’s debt in the course of our upcoming Article IV Consultation with Greece, which starts next week.

“While time has clearly run out to enter into a Stand-by Arrangement, we will remain fully engaged in supporting Greece in sustaining its economic recovery and achieving more robust growth in the post-program period. IMF engagement will include post-program monitoring, which has been used in other similar cases, notably Cyprus, Ireland and Portugal.”

IMF Communications Department