Greece’s creditors have sent the revised list of privatisations to the country’s government that include the supplementary memorandum that the Eurozone Finance Ministers approved Thursday. The 41 pages focus on the new obligations the Greek government has to fulfill. As the document points out the implementation of the reform agenda is the basis on which the Greek economy’s viable recovery will depend on. These are the four pillars:
1. Achieving fiscals targets
2. Ensuring monetary stability
3. Targeting growth, competitiveness, and investments, and
4. The creation of a contemporary state and public administration

Following are excerpts from two of the four documents sent to the Greek Government:

1. Supplemental Memorandum of Understanding
In July 2015, Greece requested support from its European partners, to restore sustainable growth, create jobs, reduce inequalities, and address the risks to its own financial stability and to that of the euro area. In August 2015, the Hellenic Republic concluded an agreement for stability support in the form of a loan from the European Stability Mechanism for an availability period of three years. In accordance with Article 13(3) of the ESM Treaty, a Memorandum of Understanding was signed which details the conditionality attached to the financial assistance facility covering the period 2015-18. The conditionality is updated on a quarterly basis, taking into account the progress in reforms achieved over the previous quarter. In each review the specific policy measures and other instruments to achieve these broad objectives outlined here will be fully specified in detail and timeline. This update reflects the agreement among the ESM, the European Commission acting on its behalf, and the authorities upon conclusion of the first review of the ESM programme. Success requires ownership of the reform agenda programme by the Greek authorities. The Government therefore stands ready to take any measures that may become appropriate for this purpose as circumstances change. The Government commits to consult and agree with the European Commission, the European Central Bank and the International Monetary Fund on all actions relevant for the achievement of the objectives of the Memorandum of Understanding before these are finalized and legally adopted. The recovery strategy takes into account the need for social justice and fairness, both across and within generations. Fiscal constraints have imposed hard choices, and it is therefore important that the burden of adjustment is borne by all parts of society and taking into account the ability to pay. Priority has been placed on actions to tackle tax evasion, fraud and strategic defaulters, as these impose a burden on the honest citizens and companies who pay their taxes and loans on time. Product market reforms seek to eliminate the rents accruing to vested interest groups: through higher prices, these undermine the disposable income of consumers and harm the competitiveness of companies. Pension reforms have focussed on measures to remove exemptions and end early-retirement, increase incentives to work and declare and to and ensure the long term sustainability of the pension system. To get people back to work and prevent the entrenching of long-term unemployment, the authorities have accelerated the absorption of ESIF funds and are working to ensure an effective impact on the economy, both in the short and the long run. A fairer society requires that Greece continues to improve the design of its welfare system, so that there is a genuine social safety net which targets scarce resources at those who need it most. The authorities are benefitting from available technical assistance from international organisations on measures to integrate its fragmented pension system, to provide access to health care for all (including the uninsured) and to roll out a basic social safety net in the form of a Guaranteed Minimum Income (GMI). Particular attention is being paid to ensure a 2 social safety net for housing through schemes that provide targeted support for households at risk of losing their primary residence.

2. Compliance Report of the Third economic adjustment programme for Greece

In July 2015, after the expiry of the previous programme supported by EFSF financing, Greece requested the European Stability Mechanism (ESM) financial assistance, to restore fiscal sustainability, address the risks to its own financial stability and to that of the euro area, promote sustainable growth, create jobs and reduce inequalities, and modernise the State and public administration. In August 2015, the Hellenic Republic concluded an agreement for stability support in the form of a loan from the ESM for an availability period of three years. In accordance with the ESM Treaty, a Memorandum of Understanding (MoU) was signed by the European Commission, on behalf of the ESM, which details the conditionality attached to the financial assistance facility covering the period 2015-18. Fulfilment of the conditionality is assessed at regular reviews, taking account of the progress in reforms. The policies in the MoU are built around four pillars: • restoring fiscal sustainability; • safeguarding financial stability; • growth, competitiveness and investment; • a modern State and public administration. This report on compliance with the MoU upon conclusion of the first review of the ESM programme has been prepared by the Commission staff, in liaison with the ECB staff, based on the findings of the missions to Greece carried out by the Commission every month between October 2015 and April 2016, together with ECB, ESM and IMF staff. In addition, Greece completed two sets of milestones in November 2015 and December 2015, which contained important reforms relevant for the completion of the 1st review of the ESM programme. The policy package described in the supplemental MoU is final. Ahead and subsequent to the Eurogroup meetings of 9 and 24 May 2016, the Greek parliament has adopted legislative acts to deliver the actions agreed in the supplemental MoU prior to the disbursement of the second tranche of the ESM programme. Notably, a large number of provisions were adopted through law 4387 of 12 May 2016 (FEK A85) and the omnibus law 4389 of 27 May 2016 (FEK A 94) as amended on 3 June 2016 through law 4393 (FEK A 106). The government also adopted a host of secondary legislation in May and June 2016, through Ministerial decisions and other acts, as agreed with the institutions. On the basis of this analysis of compliance with the MoU, the ESM programme is broadly on track paving the way for the next disbursement to Greece of an amount necessary to cover the outstanding debt service until the expected completion of the next review, and an amount to help clear the sizeable stock of arrears in line with an agreed clearance plan. Supported by the launch of the ESM programme in August 2015, the Greek economy demonstrated resilience in 2015 which is forecast to result in a recovery in the second half of 2016. Real GDP in 2015 turned out to be only slightly negative, falling by 0.2%, but that is over one percentage point better than expected after the imposition of capital controls (see Table 1). Economic activity was backed by the resilience of private.

1. Full Supplementary MoU

2. PRIVATISATION PROGRAMME
3. Updated Asset Development Plan

4. Compliance Report
The Third Economic Adjustment
Programme for Greece