The European Commission insists on the “involvement” of the IMF and the ECB in Greece

The European Commission (EC) today held that the Eurogroup should take the next day 16 decisions on the future of Greece, while insisting that the ECB and the IMF should continue “involved” in the country with the EU executive, although there may be changes in its constitution.

The European Commissioner for Economic and Monetary Affairs, Pierre Moscovici, said at a press conference that currently exist “constructive” contacts with the new Greek government and is working on a solution that respects both the election results in Greece and the commitments made by Athens with creditors.
In this regard, he recalled that they will hold several international meetings soon as the meeting of finance ministers and governors of central banks of the G20 on Monday and Tuesday in Istanbul, the European summit of 12 in Brussels and the Eurogroup on 16th.

On the future of the troika, the commissioner said that “we will have to see what we do with the methodology,” but recalled that this idea is not new and that the EC President, Jean-Claude Juncker, proposed in 2014 and replaced in “the future” with “a gifted structure greater democratic legitimacy”.

“We are not close to this approach and we have said that there must be some changes in the way the troika works, so there may be changes in the constitution,” Moscovici said of the triad formed by the EC, ECB and IMF.

After meeting on Monday with German Finance Minister Wolfgang Schäuble, and members of the Bundestag (lower house), Moscovici said today that “a number of Member States share the view of the EC that the IMF must be present”.

“I know that Greece is aware of this position and the three institutions are involved and are perfectly legitimate for the Greek government partners. We have to find a way to work together in the future,” he said.

The EC has revised down its growth forecasts for Greece to put its GDP by 2.5% this year and 3.6% next year compared with 2.9% and 3.7% in November. Nevertheless remain one of the most important growth rates in the EU. The EC considers that the momentum of recovery “would be at risk if a prolonged period of uncertainty will result in an impact with a deeper and more lasting effect on trust and investment”.

The Commission bases its forecasts on the assumption of a “sustained effort on reforms” and balanced fiscal policy, Moscovici, which is not to say that there is “room for a government,” he said.

The commissioner said “of course there may be changes in policies,” referring to the Greek electoral outcome, because otherwise there would have to vote in the European Union (EU). “But on the other hand it is also quite normal that the commitments made by the previous government (…) are met with respect to the other partners, especially the creditors,” he added.