Greece reaches deal with creditors in Brussels

By Idyli Tsakiri

ATHENS, Greece

Greece and its European creditors reached an agreement during the Eurogroup meeting in Brussels on Monday, the Greek government announced.

Representatives of the lending institutions will return to Athens next week in order to complete the technical agreement in the following days, according to an official announcement Monday.

There will be no more austerity measures, it said.

“The Greek side accepted the enactment of reforms to be implemented from 1.1.2019 onwards, provided that the fiscal balance will be absolutely neutral,” it said.

Eurogroup head Jeroen Dijsselbloem, who spoke to the press after the meeting in Brussels, said he is “very happy with the outcome today".

About the next move regarding the Greek bailout program, he said: "There will be a change in the policy mix, moving perhaps away from austerity and putting more emphasis on reform," according to his televised comments.

"They [representatives of the institutions] will work with the Greek authorities on an additional package of structural reforms of the tax system, pension system and labor market regulation," Dijsselbloem added.

On Monday, Greece paid €2 billion ($1.06 billion) to the European Stability Mechanism, the body’s Managing Director Klaus Regling said.

“The prompt payment shows Greece is a reliable contract partner. It is a sign that the restructuring of the Greek banking sector is progressing well. We will continue to work together with Greece during the remainder of the program,” Regling added.