BRUSSELS (MNI) – Europe’s top economic official, Olli Rehn, told
European Parliament Thursday that there was no reason why he and his
colleagues from the Eurozone national governments cannot conclude an
accord on Greece when they meet again next Monday.

Greece has made significant progress reforming its economy, and it
is time for Athens’ international partners to live up to their end of
the bargain, Rehn said.

He pointedly urged Eurozone officials and the IMF to convene next
Monday “with the necessary constructive spirit, and move beyond the
detrimental mindset of red lines.”

Rehn’s verbatim statement to the EU Parliament is below:

“At the beginning of this week a staff-level agreement was reached
between the EU-IMF Troika and the Greek authorities on an updated set of
programme conditionality.

The long meeting of the Eurogroup on Tuesday night saw substantial
progress towards an agreement on Greece, even if a definitive conclusion
ultimately proved elusive.

Importantly, the Eurogroup recognized that the Greek authorities
have successfully implemented the full set of prior actions agreed with
the Troika. This is the result of a very considerable effort on their
part. On the fiscal side, these include the adoption of measures
totalling some E13.5 billion or 7% of GDP.

In terms of structural reforms, important decisions have been taken
to build a more effective and efficient tax administration. That is
indeed crucial, as a fair sharing of the tax burden is a question not
only of sound public finances but equally of social justice.

For instance, further reforms to the pensions system have increased
the statutory retirement age to 67 years, and introduced a link to life
expectancy. In two years, Greece has moved from having a pension system
that was clearly unsustainable, to one whose medium-to-long-term
sustainability is being ensured.

On the financial sector, several actions have been completed to
pave the way for the recapitalisation of banks, an essential step to
restart the flow of credit to Greek households and businesses. This is
crucial for Greece to return to economic growth and job creation.

Moreover, in the healthcare sector, measures to control
over-prescriptions and fraud mean that public expenditure will have
fallen by E1 billion (or around 25%) this year, and should fall by a
further E800 million over the next two years.

So we should move beyond the myth that no progress has been made in
Greece. That perception is damaging and unfair.

Honourable Members,

Greece is delivering. Now it is time for Greece’s European and
international partners to deliver their part of the bargain.

To do that, the Eurogroup needs to decide on a credible set of
measures to restore Greece’s debt sustainability. The discussions on
Tuesday night moved us close to an agreement.

In this context, we should be clear that this set of measures does
not exclude the need to reassess Greece’s debt sustainability in the
coming years, and to take further decisions as necessary in the light of
future developments – depending of course on the full implementation of
the reform programme by Greece.

I trust everyone will reconvene in Brussels on Monday with the
necessary constructive spirit, and move beyond the detrimental mindset
of red lines.

Frankly, I see no reason why we should not be able to conclude the
package – and do away with the uncertainty that has been holding back a
return of confidence, and thus of investment and growth, in Greece. And
thus also do away with the clouds of uncertainty over the European
economy.

Honourable Members, I can assure you that my services are working
flat out to make this happen, and that the Commission will leave no
stone unturned to facilitate this essential agreement.

Europe stands by Greece. I can assure you.”

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