The European Commission signed the Memorandum of Understanding (MoU) with Greece for a new stability support programme late on Wednesday 19 August. The European Stability Mechanism (ESM), Europe's firewall established in 2012 in response to the global financial crisis, will be able to disburse up to EUR 86 billion in loans over the next three years, provided that Greek authorities implement reforms to address fundamental economic and social challenges, as specified in the MoU.
In July, improved euro-area sentiment resulted from higher confidence in industry, services and retail trade. Meanwhile,
the Business Climate Indicator has risen 0.14 points.
Staff teams from the IMF and the Commission, in liaison with the ECB, visited Nicosia during July 14-24 2015 to review Cyprus’s economic reform programme.
The teams have reached staff-level agreement on policies that could serve as a basis for completion of the review.
This July, the flash estimate of the consumer confidence indicator decreased markedly in both the EU (by 1.6 points to -4.9) and the euro area (by 1.5 points to -7.1) compared to June.