The deal provides for enhanced fiscal surveillance with conditionalities, which will prevent a derailment of fiscal policy and the abandonment of reforms.
The quarterly checks’ results will be relayed to the creditors and to the European Parliament. The reaction of the markets will be the key test of whether reforms are proceeding and are satisfactory.
Secondly, the debt relief deal ensures the sustainability of the public debt in the medium-term, will positively influence the markets, and will strengthen trust in the future of the Greek economy.
For long-term sustainability, the report says, what is needed is the continuation of fiscal and reform efforts for a protracted period. It also notes the Eurogroup’s commitment to examine further debt relief measures long-term, if there are unforeseen negative economic developments.
