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.
