#Greece's finances stabilised, the excessive deficit procedure is closed

The Council has closed the excessive deficit procedure for Greece. It confirmed that the country's deficit is now below 3% of GDP, the EU's reference value for government deficits.

On 25 September 2017, the Council repeals its 2009 decision on the existence of an excessive deficit.

Toomas Tõniste, minister for finance of Estonia, said:

"After many years of severe difficulties, Greece's finances are in much better shape. Today's decision is therefore welcome. We are now in the last year of the financial support programme, and progress is being made to enable Greece to again raise money on the financial markets at sustainable rates."

From a deficit of 15.1% of GDP reached in 2009, Greece's fiscal balance has steadily improved, turning into a 0.7% of GDP surplus in 2016. Although a small deficit is projected for 2017, the fiscal outlook is expected to improve again thereafter. Greece's debt-to-GDP ratio peaked at 179.0% in 2016 and is expected to decrease over the coming years.

In the light of this, the Council found that Greece fulfils the conditions for closing the excessive deficit procedure.

Greece will now be subject to the preventive arm of the EU's fiscal rulebook, the Stability and Growth Pact. Monitoring will continue until August 2018 under its macroeconomic adjustment programme, and post-programme monitoring will follow. The Greek authorities have committed to maintaining a primary surplus of 3.5% of GDP until 2022 and a fiscal trajectory after that that is consistent with EU fiscal requirements.

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