ECB says Greece's reform list a 'valid starting point'

FRANKFURT: The European Central Bank said Tuesday the reforms drawn up by Greece in return for a bailout extension were a "valid starting point" for talks, but that they differed in a number of areas from the existing programme.

"Our initial impression is that the document covers a wide range of reform areas and in this sense, it is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review," ECB president Mario Draghi wrote in a letter addressed to Eurogroup chief Jeroen Dijsselbloem.

But he added: "We note that the commitments outlined by the authorities differ from existing programme commitments in a number of areas."

At last-gasp talks on Friday, eurozone ministers had agreed a four-month bailout extension but only if Greece's new left-wing government came up with a binding list of reforms to put its finances back on track.

Greece handed in the promised reforms, including commitments to battle tax evasion and corruption, to Brussels on Monday night.

Eurozone finance ministers said Tuesday, shortly before the ECB announcement, that they had approved the list of reforms.

The 19 ministers decided in a teleconference that "they consider this list of measures to be sufficiently comprehensive to be a valid starting point", using the same wording as that adopted by the ECB.

Draghi insisted that "the basis for concluding the current review, and also for any future arrangements, will be the existing commitments".

But in view of the differences, "we will have to assess during the review whether measures which are not accepted by the (Greek) authorities are replaced with measures of equal or better quality in terms of achieving the objectives of the programme," Draghi said.

He ended the letter by saying he would urge Athens "to act swiftly to stabilise the payment culture and refrain from any unilateral action to the contrary".

Parliaments in several of the eurozone's 19 member states including economic powerhouse Germany must now vote on the proposals by Athens, before Greece's bailout expires on Saturday.