BUSINESS

Commission tells Greece support measures for economy must be 'targeted'

TAGS: Economy, EU

European Commission Executive Vice President Valdis Dombrovskis confirmed on Tuesday that Greece can maintain next year the fiscal flexibility which aims at halting the economic consequences of the measures taken to halt the spread of the novel coronavirus.

In the instructions sent to Greek Finance Minister Christos Staikouras, the EU official said member-states should continue to support the recovery throughout 2021.

“In this context and under the weight of uncertainty about the evolution of the pandemic and the socio-economic impact, the ‘general escape clause’ will remain active in 2021,” he said.

He stressed, however, that emergency financial support measures should be “targeted and temporary,” and their use and effectiveness should be evaluated regularly.

The “general escape clause” allows member-states to deviate from parts of the Stability and Growth Pact's preventive or corrective arms, in exceptional circumstances that affect a country’s economy, such as the current pandemic.

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