EU sources: Positive momentum for Greek program must be exploited; Athens eyes best-case scenario

By N. Bellos

Unreservedly optimistic forecasts by the European Commission for the Greek economy in the current year and over the upcoming two years could smooth the way for a second review of the Greek program (third bailout) at the Dec. 5 Eurogroup meeting, as well as much-coveted debt relief measures.

According to EU sources in Brussels on Friday, positive forecasts for GDP growth and fiscal adjustment have create momentum for the crisis-battered country, which under no circumstances should be lost. The same sources cited a need for all sides involved in the Greek program, European creditors and the IMF, to provide an immediate and powerful fillip for the Greek economy.  

A best-case scenario, as far as Athens is concerned, includes:

• A total agreement at the Eurogroup setting for the review and debt relief.
• A binding “road map” for debt relief, short-term, medium-term and possible long-term measures.
• A commitment, in principle, by the IMF to rejoin the Greek program as a lender.
• Immediate inclusion of Greek bonds in the ECB’s QE program.
• Lifting of capital controls imposed by the leftist Greek government in late June 2015 on Greek bank accounts.
• Meeting projected growth targets of 2.7 percent in 2017 and 3.1 percent in 2018.
• An unqualified return of the Greek state to international markets with the conclusion of the third bailout program in mid-2018.