Greece will not need a new bailout program if it implements the reforms agreed in the beginning of the program, the Managing Director of the European Stability Mechanism (ESM), Klaus Regling, told Deutsche Welle on Friday.
Asked about the Greek crisis, he said he believed the country’s problems will not dominate the agenda of his second term. Regling is expected to renew his appointment as head of the ESM for another five years, as member-states have not proposed other candidates.
“I do not think Greece will need our help for another five years […] I believe that if Greece implements the reforms that were agreed upon in the beginning of the program, then this will be the last program,” he was quoted as telling DW.
He said the country has made progress in important sectors but must take more steps in the next 18 months, mainly in the field of structural reforms. “If this happens, then I am certain Greece will be able to raise money from the markets again, to refinance itself, and will no longer need the loan assistance of its European partners,” he said.
Regling noted however that Greece and its creditors will not achieve an agreement on the country’s program review Monday’s Eurogroup because the remaining issues are “quite complicated”.
“To conclude it, the four institutions will first have to return to Greece. There cannot be a final conclusion of the review before that. We may achieve some progress on this on Monday,” said.