BRUSSELS: The EU recommended Wednesday that three times bailed-out Greece has made enough progress in balancing its budget to be removed from special oversight of government spending.
The move is a further boost for Athens days after it secured a fresh tranche of cash from its latest bailout to meet crucial debt payments and avoid a fresh crisis.
The decision showed the progress Greece has made, said European Commission Vice-President Valdis Dombrovskis, who has special responsibility for the euro zone.
“I invite Greece to build on its achievements and continue to strengthen confidence in its economy,” Dombrovskis said, adding that it was “important for a return to the markets.”
EU rules require member states to run a budget deficit — the shortfall between government revenue and spending — of not more than 3 percent of total annual economic output.
The lifting of the Excessive Deficit Procedure (EDP) for Greece will allow the government greater leeway in managing its finances after years of austerity and spending cuts demanded by Brussels to bring the budget deficit under control.
“This follows the substantial efforts in recent years made by the country to consolidate its public finances coupled with the progress made” in its debt rescue programs, the European Commission said in a statement.
The commission noted that if member states approve its recommendation later this year, only three countries will remain under the excessive deficit procedure — France, Spain and Britain.
At the height of the financial crisis in 2010, 24 of the 28 member countries were on the EDP blacklist. The Greek economy nearly collapsed under a mountain of debt that year and it had to be bailed out by its euro zone partners three times, the last in 2015, to prevent it bringing down the single currency bloc.
Only last week, euro zone finance ministers approved the latest €8.5 billion ($9.7 billion) disbursement, just in time for Athens to meet major debt repayments and avert a default.
In return for the bailouts, Greece had to adopt painful and hugely unpopular austerity measures.
According to the commission’s figures, Greece ran a budget deficit of 15.1 percent in 2009, which had been turned into a surplus of 0.7 percent last year, and it said it expected further progress this year as more savings are found.
“As a result of these efforts, the deficit is now projected to remain below the 3 percent threshold” for the next several years, it said.
Greece set to leave EU deficit blacklist
Greece set to leave EU deficit blacklist
Closing Bell: Saudi main market closes the week in red at 10,526
RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.
The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.
Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.
Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).
On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.
Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.
On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.
Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.
Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.
On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.
The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.
Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.
Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.
The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.
