Press Release: Letter by IMF Managing Director Christine Lagarde to the President of the Euro Group on Greece
IMF News, February 14, 2015
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Bibliographic details
- Published: February 14, 2015
Summary of the letter (dated February 23, 2015)
- Author: Christine Lagarde, Managing Director, International Monetary Fund.
- Recipient: The Honorable Jeroen Dijsselbloem, President of the Eurogroup, Finance Minister, Kingdom of the Netherlands.
- Context: My Staff has reviewed the list of measures that the Greek authorities prepared over the weekend.
Key findings and assessments
- The IMF staff view:
- The list “covers the broad topics that should be on the new Government’s agenda.”
- The list “is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review,” as called for by the Euro Group at its last meeting — noting that a final determination should rest primarily on an assessment by Member States themselves and by the relevant European institutions.
- Specificity and clarity:
- While the authorities’ list is comprehensive, it is generally not very specific, which is perhaps to be expected considering that the government is new in office.
- In some areas, like combating tax evasion and corruption, the IMF is encouraged by what appears to be a stronger resolve on the part of the new authorities in Athens, and looks forward to learn more about their plans.
Areas of concern (where the letter finds insufficient commitments)
- The letter notes lack of clear assurances or unequivocal undertakings in:
- Comprehensive pension policy reforms.
- VAT policy reforms.
- Continued implementation of already-agreed policies for opening up closed sectors.
- Administrative reforms.
- Privatization.
- Labor market reforms.
- Importance: The IMF emphasizes that such commitments are critical for Greece’s ability to meet the basic objectives of its Fund-supported program, and these are the areas subject to most of the structural benchmarks agreed with the Fund.
- Implication: Discussions on a completion of the review cannot be confined within the policy perimeters outlined in the Government’s list.
Next steps, cooperation, and objectives
- The IMF and its staff express willingness to work with the new Government on finding common ground.
- Objective: Concluding the 6th review of the Fund-supported program as soon as possible.
- Closing: “Thank you for all your efforts to get us to this point.” — Christine Lagarde
Administrative and contact details (from the press release header)
- Press Release No. 15/71
- Date on page header: February 14, 2015
- Media contact: IMF COMMUNICATIONS DEPARTMENT, Media Relations
- E-mail: media@imf.org
- Phone: 202-623-7100
International Monetary Fund