Eurogroup supports precautionary credit line for Greece
On 6 November the Eurogroup ministers in Brussels discussed the follow-up to Greece's economic adjustment programme. They supported granting Greece a precautionary credit line.
The discussion on the follow up to Greece's economic adjustment programme took place after Gikas Hardouvelis, the Greek Minister of Finance, had set out the Greek government's position.
In the light of fragile market sentiment and challenging reforms in the pipeline, ministers strongly supported a precautionary credit line to be extended to Greece. This could be done through a European Stability Mechanism Enhanced Conditions Credit Line (ECCL) once the current programme has ended.
The credit line would support Greece's efforts to regain full market access and build upon the achievements of the current programme. The details of the credit line and attached conditions will be determined in the coming weeks on the basis of the final review of the current programme. Ministers agreed that the IMF should continue to be involved.
Reforms progress in Cyprus
Ministers welcomed the progress made by the Cypriot authorities towards establishing an effective legal framework for private debt restructuring. This should pave the way for the completion of the fifth review of the Cypriot programme.
Commission presents autumn forecast
Eurogroup took stock of the economic situation on the basis of the Commission's autumn forecast. The ministers considered the loss of growth momentum unsatisfactory. They reiterated the need for a credible mix of sound fiscal policy, structural reforms and increased investment. All agreed on the need to further improve the economic governance of the euro area.
The Eurogroup will discuss the Commission's opinions on draft budgetary plans in a dedicated meeting later this year.
The next scheduled Eurogroup meeting is on 8 December 2014.
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