OECD

Greece: Prior Actions

Policy Commitments and Actions to be taken in consultation with EC/ECB/IMF staff:

1. 2015 supplementary budget and 2016-19 MTFS[1]

Romania and Croatia are two of the worst governed countries in Europe according to a new study by the Bertelsmann Stiftung's Sustainable Governance Indicators project.

The platform surveyed 41 European and OECD countries in six sectors: economic, social and environmental policies, quality of democracy, executive capacity and executive accountability.

Greece and its international creditors have 72 hours to resolve their differences, with the likelihood of a default seeming more likely as the tock ticks on. Eyes are now turned to European Central Bank Chief Mario Draghi and the central bank meeting on Wednesday that will decide whether funding for Greek banks will continue through European Liquidity Assistance (ELA).

The latest information out of negotiations in Brussels, according to Proto Thema sources, refers to a nine-month extension of the Greek bailout package worth 20 billion euros, while “haggling” is apparently continuing over creditors’ demands for pension reforms and higher tax rates.

The Greek Radical Left Coalition (SYRIZA) government is working towards convergence with its international creditors from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF). So far, Greece’s lenders have yet to open their canisters and offer Greece the 7.2 bln euros benchmarked for the country since last year.

Here’s what creditors’ conditions are, as listed in a framework text handed to the Greek government.
— An extra 1.8 billion euros in revenue for VAT hikes, with the rate at 11 percent for foodstuffs, medicines and hotels, but with the abolition of the lower for certain islands.

The Organisation for Economic Co-operation and Development (OECD) cut Turkey?s growth forecast for 2015 to 3.1 percent from 3.2 percent, the organization said in a report released on June 3.

Italian Economy and Finance Minister Pier Carlo Padoan said on Wednesday he was confident a deal would be reached between Greece and its creditors but warned that time was running out.

"We will have a deal on Greece, I am fairly confident,» he told reporters on the margins of a conference at the OECD think tank in Paris.

A Greek exit from the euro zone is «not on the table», Spanish Economy Minister Luis de Guindos said on Wednesday, adding that he was certain a deal would be reached between Athens and its creditors.

The OECD on June 3 sharply lowered its global growth forecasts for 2015 and 2016, dragged down partly by a "transitory" shortfall in US performance and by businesses and governments skimping on investment.