Finance minister Yannis Stournaras on Wednesday said it is “natural” for Greece to remain under strict fiscal supervision for the next 30 years, even after it exits a painful adjustment and reform program.
Mr. Stournaras was asked to comment on a statement by European Union commissioner Olli Rehn that the Greek economy will be under the watchful eye of the European Commission (EC) and the European Central Bank (ECB), even after Greece’s bailout loan program expires.
He said that Mr. Rehn’s comments apply to all euro zone countries that have loans from the European Financial Stability Facility (EFSF).
“It is something that applies to all countries that have taken a loan from the EFSF. It’s not only for Greece,” Mr. Stournaras said, adding that “in a federal Europe all our budgets are under the control of [all] the others”.
As of 30 May, all euro zone members are bound by tighter fiscal regulations. This applies especially to those countries under adjustment programs overseen by the EC and the ECB, until 75 per cent of loans are paid back.
Greece has received €133 billion in loans from the EFSF, of which the average maturity is 30 years. It remains to be seen whether an extension will be granted to Greece, as to lighten its debt burden.
Olli Rehn made the statement during a conference in Lithuania last week, in response to a question by SYRIZA MP Nadia Valavani on the subject of Greece’s debt burden.