“Normal financial situation”
The European Commission announced on Wednesday that it will not extend the advanced surveillance measures tied to Greece’s reform program beyond the current schedule. With the monitoring period set to end next August 20, the decision signals confidence in Athens’ progress and its ongoing commitment to reforms promised to the Eurogroup in 2018. The Commission noted that Greece had fulfilled many commitments and demonstrated the effective implementation of reforms, marking a shift in the country’s post-crisis trajectory.
According to officials, Greece’s sustained efforts have strengthened the resilience of the Greek economy and significantly reduced the indirect risks to the euro area. The argument presented is that maintaining enhanced surveillance is no longer justified given the tangible improvements and the reduced risk profile. The decision was conveyed to the Greek government in a formal letter, and Athens responded by framing it as a new chapter in its modern history, underscoring the notable progress achieved despite pandemic-related challenges and the impact of the war in Ukraine.
Greece has emerged from a period of strict oversight to a phase characterized by renewed normalcy in its financial operations. The country is described as having reached a normal financial situation. This assessment aligns with a broader determination to continue along the reform path for the benefit of Greek citizens and future generations, as well as for the stability and prosperity of the European Union as a whole. The Greek Finance Minister highlighted this transition, emphasizing that the reforms have been of substantial benefit and that the nation stands ready to carry on with prudent fiscal management and policy execution.
The European Commission also indicated it would keep a watchful eye on Greece through existing oversight mechanisms within the post-alignment program framework and the European Semester. These instruments monitor economic milestones across all member states and ensure continued alignment with broader EU goals. In its remarks, the Commission welcomed Greece’s achievements and reiterated its expectation that reforms would continue beyond the formal period of enhanced supervision.
8 years of aid and reforms
The Eurogroup concluded the third bailout package for Greece in June 2018, marking the end of an era defined by extraordinary international support and comprehensive reform. That moment signified the resolution of eight years of unprecedented financial aid and structural changes in Athens, the most visible face of Europe’s financial crisis. The path to stability involved sweeping reforms across several fronts, including the labor market, taxation, social security, pensions, and public administration. The country also undertook privatizations and substantial financial adjustments, alongside deep restructuring of the banking sector—all achieved at a time of heavy social and economic sacrifice for the population.
As a result of these efforts, Greece moved from a period of contraction to growth. Real GDP declined sharply during the crisis years, yet over time the economy began to recover. The records show GDP shrinking by 5.5 percent in 2010, followed by a gradual return to positive growth, with growth measuring around 1.4 percent in 2017. Budgetary indicators also shifted from a sizable deficit of 11.2 percent to a small surplus of 0.8 percent in the later years of the reform program. Nonetheless, the journey remained challenging: unemployment stood as one of the highest in the European Union at about 20 percent, and non-performing loans remained a persistent concern for the banking system. The path out of crisis required persistent policy discipline and structural reforms that continued to shape Greece’s macroeconomic landscape.
Today, while the headlines celebrate progress, the underlying story remains nuanced. The economy has shown resilience, but vulnerabilities persist, and the ongoing challenge is to sustain gains while ensuring that growth translates into broad-based improvements for households and small businesses. Policy makers stress the importance of maintaining credible fiscal plans, advancing labor market modernization, and completing financial sector reforms to support a durable recovery. In this context, the government and the European partners continue to cooperate on reforms that bolster investment, productivity, and social protection, with a focus on stability, job creation, and long-term prosperity for Greece and the wider euro area.
In sum, the shift away from enhanced surveillance marks a milestone in Greece’s post-crisis journey. It reflects both demonstrable progress and a shared EU commitment to monitor the country’s trajectory. The aim remains straightforward: sustain fiscal discipline, deepen structural reforms, and uphold the stability and cohesion of the European Union as it adapts to evolving economic currents and global uncertainties.