Enhanced Surveillance Report

Abstract

Greece has been integrated into the European Semester for economic policy coordination following the completion of the ESM stability support programme. To cater for the specific needs and challenges facing Greece,the Commission also activated enhanced surveillance under Regulation (EU) No 472/2013,1effective from 21 August 2018 and extended for a further six months by a Commission Decision of 20 February 2019.2Enhanced surveillance provides a comprehensive framework for monitoring economic developments and the pursuit of policies needed to ensure a sustainable economic recovery. It provides for a regular assessment of recent economic and financial developments in Greece, as well as for monitoring sovereign financing conditions and updates of the debt sustainability analysis. Enhanced surveillance also provides the basis for assessing the general commitment given by Greece to the Eurogroup of 22 June 2018 to continue and complete reforms adopted under the ESM stability support programme and to safeguard the objectives of the reforms adopted under that programme and its predecessors.In thatcontext, it provides the basis for monitoring the implementation of specific reform commitments annexed to the Eurogroup statement of 22 June 2018 in the areas of (i) fiscal and fiscal-structural policies, (ii) social welfare, (iii) financial stability, (iv) labour and product markets, (v) privatisation and (vi) public administration.