The Eurogroup is scheduled to convene today at 4pm in Brussels, with the Eurozone Finance Ministers expecting to be updated by the ESM’s Klaus Regling on the 1-billion-euro tranche that Greece is to receive, after being approved by the Eurogroup Working Group on Friday.
The Minister of Finances Gikas Hardouvelis will be called to inform his European counterparts of the prior actions that been implemented, as well as to ensure them of the coalition government’s determination to continue with its reforms. In order to carry on collecting loan installments, the government must implement six prior actions by the end of July.
On Wednesday the troika heads – the IMF’s Poul Thomsen, the ECB’s Klaus Masuch and the EU’s Declan Costello – are to visit Athens for a 7-10 day “mini review”. Aside from the implementation of prior actions, the troika heads will be examining the budget gaps that will emerge, after the State Council rulings on the wages of special professional groups, such as uniformed officers.
With the State Council have ruled in favor of judicial and uniformed officers, the coalition government may be faced with further claims by doctors, academics and other professional groups that have suffered extensive wage and pension cuts, resulting a in potential 1-billion-euro gap. This may threaten the government’s primary deficit and ability to negotiate for debt relief later in September.
