Discussions between the Greek government and the institutions were due to draw to a close on Thursday, leaving Athens with 2-3 weeks to complete the 16 reforms that are pending as part of the second review of the post-programme era.
The second review of the enhanced surveillance period is due to get underway in earnest on Tuesday, when the institutions’ mission chiefs are expected to hold their first meeting of the year in Athens with government officials.
As Greece approaches the six-month mark after officially exiting its final bailout programme, the government’s to-do list still remains substantial.
Another court decision on backpay has revived fears that in the months to come the Greek government could be facing an additional spending outlay that may threaten to derail plans to maintain a primary surplus of 3.5 percent of GDP until 2022.
Speaking at the Capital Link Forum in New York on Tuesday, a day after European Commission official Declan Costello had issued another reminder that Athens must ensure it completes its pending reforms on time, Finance Minister Euclid Tsakalotos appeared confident that there would not be any delays.
The Greek government wasted no time following the conclusion of the Eurogroup on Tuesday, as it submitted to Parliament draft legislation that will lead to the pension cuts that had been lined up for next year being cancelled.
Greece is not expected to feature prominently at Monday’s Eurogroup but eurozone finance ministers are expected to give the 2019 budget the final green light and urge Athens to quickly shift its attention to the 16 post-programme actions that have to be completed by February.
As part of the European semester package, the European Commission issued on Wednesday the first report for Greece under the enhanced surveillance framework that came into effect following the conclusion of the European Stability Mechanism (ESM) programme last August.
The government is set to submit the final version of the 2019 budget to Parliament on Wednesday without the pension cuts that were pre-legislated in 2017 but with the so-called “positive” measures announced by Prime Minister Alexis Tsipras at the Thessaloniki Expo in September.
Greece and the European institutions appear to be just days away from a compromise over next year’s budget, although the form that their agreement will take is a matter of some dispute.