Dijsselbloem: Euro area economy recovery on track

BRUSSELS, Feb 20 (KUNA) -- Finance ministers of 19-member Eurogroup exchanged views Monday on economic situation in the euro area, following the European Commission's recent presentation of its winter 2017 economic forecast.
"On the euro area economy, the recovery is clearly on track. There are a lot of downward risks also looming outside Europe and outside the euro area, yet we are entering the fourth consecutive year of economic recovery and the recovery is gradually becoming stronger," Eurogroup President Jeroen Dijsselbloem told a press conference after the meeting this evening.
"Real GDP grew steadily at 1.7 per cent last year. Lots of positive signs coming from different euro area member states; rate of unemployment going down in most countries," he said.
Eurogroup also discussed the second review of Greece's economic adjustment programme, where the main outstanding issues include the medium-term (in 2018 and beyond) fiscal strategy and labour market reform.
"We have intensified the talks in the last week and a half with the institutions and the Greek government to find enough common ground for the institutions to go back to Athens and the outcome of today is that they will go back to Athens in a very short term," said Dijsselboem.
The four institutions are the European Commission, the European Central Bank, the International Monetary Fund and the European Stability Mechanism.
They will work with the Greek authorities on an additional package of structural reforms looking at the tax system, pension system, also in the labour market regulation. There will be a change in the policy mix moving away from austerity and putting more emphasis on deep reforms, he added.
Meanwhile, The Board of Governors of the European Stability Mechanism (ESM), the Eurogroupآ’s permanent bailout fund, today reappointed Klaus Regling of Germany as Managing Director of the ESM. The second and final five-year term of his office will start on 8 October 2017.
"Klaus Regling developed the ESM into the credible backstop that safeguards financial stability in the euro area. Also, he established the ESM as a trusted issuer in the currency union. making it a key factor in overcoming the euro crisis", said Dijsselbloem, Chairman of the ESM Board of Governors.
The Board of Governors is composed of the 19 euro area finance ministers. (end) nk.bs