Three significant news emerged from the Eurogroup and ECOFIN meeting in Brussels, as reported by the Ministry of National Economy and Finance K. Hatzidakis.
Specifically, these pertain to the Eurogroup's commendations for Greece's 2024 budget, the approval of the revised Recovery and Resilience Plan of Greece, and the apparent exemption of defense expenditures from the calculation of excessive deficits.
As per the ministry's statement, during Thursday's Eurogroup meeting, the budget plans of Eurozone member states for 2024 were approved, with Greece being one of the seven countries whose budget was deemed fully aligned with the guidelines of the Eurozone policy. Additionally, discussions on the development of European capital markets continued, featuring the participation of OECD Secretary-General Mathias Cormann, who specifically highlighted Greece's new framework of resilience as an "example" and "internationally good practice."
Today, during the ECOFIN meeting, the revised Recovery and Resilience Plans of 13 countries, including Greece, were approved. This results in additional funding of 5.7 billion euros for Greece, raising the total budget for "Greece 2.0" to 36 billion euros by 2026. Commissioner for Economy Paolo Gentiloni made positive references to the inclusion of environmental initiatives and reforms in Greece's plans.
Furthermore, negotiations on the new framework of fiscal rules to replace the existing Stability and Growth Pact continued, with further convergence of opinions on specific issues. Discussions will persist in the coming period with the goal of reaching a final agreement. However, it appears there is already a broader consensus on the need to exempt defense expenditures from the calculation of excessive fiscal deficits.
According to Minister Kostis Hatzidakis, "we had three very positive developments for our country: Firstly, it was once again confirmed that Greece is among the countries moving in the right direction, as the budget plan we submitted was approved by the Eurogroup without asterisks and footnotes.
Secondly, the increase in the funds of the Recovery and Resilience Fund by 5.7 billion was formalized, further enhancing the possibilities for beneficial interventions with a multiplier effect on the Greek economy.
Moreover, with positive references to the nature of the programs and reforms promoted by the Greek government.
Thirdly, progress was made towards shaping a new Stability Pact that will simultaneously ensure fiscal discipline and economic growth, while taking special care of countries with high defense expenditures. It seems that the persistent request of Greek governments for the exemption of defense expenditures from the calculation of excessive fiscal deficits now gathers the consensus of the member states, and this is very important news for Greece.
However, regardless of these positive developments, our government will continue to work with seriousness and method, combining fiscal discipline with development policies so that Greece can capitalize on and maximize the significant progress made over the past four and a half years."
It is noted that within the framework of ECOFIN, the decision was made for the Minister of Finance of Spain, Nadia Calviño, to assume the presidency of the European Investment Bank (EIB). Ms. Calviño will succeed the outgoing President Werner Hoyer from January 1, 2024.
