MNI EXCLUSIVE: Greece to Exit Excessive Deficit Procedure Mon

--Move Would Leave Only 3 EU countries in EDP: France, Spain, and UK

By Jean Comte

     BRUSSELS (MNI) - Greece is set to see the end of its Excessive Deficit

Procedure as early as Monday, with European Union member states set to approve

the move. No formal discussion is expected, as it is clear that the Greek

deficit is now under the EU legal threshold of 3% of GDP.

     Athens had a positive balance of 0.7% of GDP through 2016 and it is

expected to have a deficit of 1.2% in 2017, according to both Eurostat and EU

Commission's forecasts.

     The end of the EDP would be a symbolic move for the highly indebted

country. But it wouldn't materially change its obligations to comply with the

financial support program agreed in August 2015, which runs until 2018 and

involves a comprehensive set of structural reforms in exchange of low-interest

loans.

     ONLY THREE COUNTRIES LEFT IN EDP

     The move will leave 3 EU countries in the Excessive deficit procedure:

France, Spain, and the UK. France and the UK are expected to reach the 3%

threshold this year, and to formally exit the EDP in 2018, if their public

finances remain on a sustainable trajectory. Spain is expected to reach the

threshold in 2018, with exit in 2019.

     Portugal and Croatia exited the EDP in mid-June, as reported by MNI.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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