Eurogroup meeting, 14 January 2016

Main results

+ Greece: state of play
The institutions and the Greek Minister for Finance, Euclid Tsakalotos, briefed the Eurogroup on the next steps in implementing Greece's economic adjustment programme.

The institutions intended to start the first review of the programme implementation the following week. The review was expected to focus on the following key issues:

- pension reform
- the 2016 budget
- medium-term fiscal strategy
- modernisation of Greece's public administration
- financial sector reforms
- reforms in the electricity sector

Ministers called on the Greek authorities to cooperate constructively with the institutions to ensure a smooth and thorough first review. Successful completion of this exercise would pave the way for decisions on possible debt relief measures and an IMF programme, as agreed by the heads of state or government in July 2015.

+ Cyprus: state of play
The Eurogroup discussed the 8th and final review of Cyprus' adjustment programme. The institutions pointed out that Cyprus had made significant progress in implementing the programme.

Cyprus was now expected to fulfil two outstanding conditions, the so-called 'prior actions', which have to be implemented to formally finalise the review. The finalisation of the review will pave the way for the final ESM disbursement of about €300 million.

+ European Semester
The Eurogroup exchanged views on the implementation of the 2015 euro area recommendation and discussed the draft Council recommendation on economic policy of the euro area for 2016, which was scheduled to be approved by the ECOFIN Council on 15 January 2016.

Ministers agreed on five policy priorities for the euro area in 2016-2017, based on a European Commission proposal:

- structural reforms
- supporting employment
- sound fiscal policies
- reducing debt
- continuing the deepening of the Economic and Monetary Union

The recommendation would be submitted for endorsement to the European Council and then formally adopted by the Council.

Other topics discussed:
- IMF Article IV consultation with the euro area
- Thematic discussion on growth and jobs: national insolvency frameworks
- Asian Infrastructure Investment Bank (AIIB)

ESO: Background information: Greece defiant on pension cuts ahead of key talks with creditors http://www.europeansources.info/record/greece-defiant-on-pension-cuts-ahead-of-key-talks-with-creditors/

Eurogroup: Press Release 8/16, 14.01.16: Remarks by J.Dijsselbloem following the Eurogroup meeting of 14 January 2016 http://www.consilium.europa.eu/en/press/press-releases/2016/01/14-eurogroup-jd-remarks/

European Commission: DG Communication: SPEECH/16/79, 14.01.16: Commissioner Moscovici's opening remarks at the Eurogroup press conference http://europa.eu/rapid/press-release_SPEECH-16-79_en.htm

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