The European Commission VP Valdis Dombrovskis has announced that the critical reform of the pension system and the operation of the new privatization fund are requirements needed for the Greek bailout program review to begin next week.
In his interview for the Kathimerini daily newspaper, Mr. Dombrovskis also expressed his concern over entrepreneurship in Greece in light of the recent spat between the government and the Eldorado mining company.
Mr. Dombrovskis also stressed the need to complete these two ‘prior actions’ so that the bailout program review can be carried as soon as possible. This is instrumental in restoring credibility and providing the necessary stability that the Greek economy requires.
Regarding the IMF’s involvement in the bailout program, the VP opined that while the Greek debt in relation to the country’s GDP is rather high, the low interest rates and long grace period mean that the cost of servicing it is manageable and cited the examples of the Italian and Portuguese debt.