Troika: Greek economy begins to stabilise

The economy of Greece is beginning to stabilize and is poised for a gradual resumption of growth, said the Troika's review mission to the country on Wednesday. The Troika, namely the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF) have concluded their review mission to Greece. "Prices are adjusting and inflation remains well below the euro area average," said the Troika reviewing report to Greece. It said the fiscal performance of the country is on track to meet program targets, only a small portion of this over-performance will carry over into 2014, and the 2014 fiscal targets will also be met, taking into account the measures being implemented and planned. The Greek authorities reconfirmed the Troika that their commitment to implement policies needed to achieve the 2015 primary surplus target of 3 percent of GDP, including as needed by extending expiring fiscal measures, such as the solidarity surcharge. "The authorities are making progress on structural reforms to improve the growth potential and flexibility of the Greek economy and help create a fairer and more supportive environment for investment, growth, and job creation," said the report. According to the reviewing report, the Greek authorities are also continuing their efforts to strengthen the social safety net to cushion the impact of the economic downturn. "Notably, programs to hire youth and unemployed workers under programs financed by EU structural funds will be expanded," it said, adding "A minimum income guarantee program is being launched on a pilot basis in two municipalities with the aim of rolling it out on a phased-in national basis in 2015." The Eurogroup and the IMF's Executive Board are expected to consider approval of the review in the coming weeks.