Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank – Growth for Greece

Greece is going through an economic and social crisis which is unprecedented in Europe in modern times. To get through it and to rebuild a successful economy will require a united national commitment by the population and their political leaders – only Greece can put itself on a different path for the future. The underlying causes of the crisis had been building up for several years and reversing these negative trends will take time.
A crisis of such magnitude calls for far-reaching changes in Greece so that a new, dynamic, competitive Greek economy can emerge, one that is capable of generating sustainable growth, creating jobs, supporting social cohesion and delivering on the expectations of Greek citizens.

Greece does not have to face this huge challenge on its own. It can draw strength and concrete support from its membership of the European Union and of the Euro area. Supporting Greece in the effort that lies ahead requires long term solidarity from the rest of the EU. Other Member States and the EU institutions have made clear their desire to help Greece and to keep Greece in the Euro – by providing help on a scale that was unthinkable even a few years ago.

The total package of assistance to Greece, including loans from EU and financial institutions, write-downs on private sector debt holdings, and grants from the EU structural and other funds, adds up to about €380 billion. This is equivalent to 177% of Greek GDP. This level of assistance is unprecedented (the US Marshall Plan for post-war reconstruction involved transfers equal to around 2.1% of GDP of recipient countries).

Throughout the crisis, the Commission has been active in assisting Greece, delivering direct support and liaising with the other Member States, EU institutions and the international community to devise unprecedented solutions and to deliver lasting results on the ground. Across the Commission, teams have been mobilised to the full and are working actively with the Greek administration in Brussels and Athens.

To provide the technical assistance required, the Commission also set up a dedicated Taskforce for Greece in July 2011. Moreover, the Commission is tasked with enhanced monitoring of commitments and progress. As the annex to this Communication shows, tangible results are beginning to emerge and promising avenues have been identified through this work.

The Commission has decided to issue this Communication now because after many months of uncertainty the main framework for recovery in Greece is in place. Greece has taken important steps to reduce its public sector deficit and adopted new fiscal and economic policies. Agreement on the Second Economic Adjustment Programme and the success of the recent private sector debt reduction operation provide an opportunity to create a new dynamic to speed up the badly needed structural reforms.

• Primary Source

EUR-Lex: COM(2012)183: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2012:183:FIN

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