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Memorandum of Understanding on Specific Economic Policy Conditionalitythe Greek SMEs (April 2014). For the period 2014-20, it will launch an ex ante assessment asdefined in article 37 paragraph 2 of the Regulation 1303/2013 (June 2014).10. Based on the document "Guidelines for an Effective Anti-Fraud Strategy for the StructuralFunds and the Cohesion Fund", and in accordance with the requirements of the relevantRegulation, the Government will produce and implement a comprehensive anti-fraud strategyconcerning EU co-funded projects as follows coordinated by the National Coordinator onAnticorruption:i. Identification in cooperation with the EC of a comprehensive anti-fraud strategyinvolving all stakeholders, including a multi-annual action plan covering the field of theEuropean Structural and Investment Funds (April 2014).ii. Implementation of the identified measures falling under the responsibility of the Ministryof Development and covering all EU co-financed programmes (July 2014).iii. Full implementation of the anti-fraud strategy for co-financed projects across allGovernment relevant departments by December 2014 according to a precise calendar tobe defined (April 2014).8.2. European Agricultural Fund and Rural Development (EAFRD).To improve the use of the EU funds in the area of Agriculture and Rural Development, theGovernment supported by the necessary technical assistance undertakes to:1. Meet the target for payment claims in the absorption of the EAFRD set out in the respectivetable in chapter 8 of the MoU (December 2014).2. Ensure the national contribution for the 2007-2013 Rural Development Programme cofinancedby the EAFRD (continuous).3. Ensure the necessary administrative capacity at all levels (national and regional) for thesound management of the Rural Development Programme 2014-2020. In order to achievethis, the Government will submit a plan of action aiming to fulfil this condition at the timeof approval of the new programme (May 2014).4. Develop an action plan detailing necessary steps, deadlines and responsible actors (bothprivate and public) for the creation of a network for advisory and technical services and anelectronic system of administrative and statistical data based on the principles of e-governance within the Ministry of Rural Development and Food, in view of having thissystem in place by 2015 (first year of full CAP implementation). The system should coverall relevant data, including payments, controls, statistical surveys and the FADN (FarmAccountancy Data Network) and take into account and integrate the specifications forelectronic systems required for the implementation of the CAP Monitoring and EvaluationFramework. Synergy with RD networks and electronic systems for management, evaluationand monitoring systems must be secured (June 2014).5. Update the existing error rate action plan for rural development in order to guarantee thesound financial management of the policy and maintain the error rate at the acceptable levelof materiality (April 2014).6. In order to reduce the substantial amounts of financial corrections relating to direct aid inthe new programme period, the Government shall prepare an action plan to addressstructural weaknesses within the Land Parcel Identification System (LPIS) (April 2014).This should include actions to:i. Update the LPIS on the basis of new imagery at least 30% of the old ortho-images inLPIS by December 2014, and the remainder by December 2015.ii. Remove from LPIS the permanent pasture land that does not comply with theeligibility conditions of the EU legislation for receiving CAP aid (May 2014).216
Memorandum of Understanding on Specific Economic Policy Conditionality9. Institutional compliance9.1. StatisticsPrior to the disbursement,a. the Government completes the transfer of 28 employees to Elstat from other GeneralGovernment entitiesb. Take all necessary actions to allow the provision of administrative data by Governmentdepartments to ELSTAT. The arrangements for full access by ELSTAT to all taxinformation necessary for the development, production and dissemination of statistics shall beformalised by mutual agreement between the Minister of Finance and the President ofELSTAT, respecting the principles of professional independence of ELSTAT and ofstatistical confidentiality. ELSTAT will take all necessary internal measures to preserve theconfidentiality of tax information to which it has access. Amendment to the Greek legalframework, i.e., the relevant provisions in tax legislation and the law on statistics, shall betaken as appropriate in that respect including repeal of the amendment of Art. 93 para. 1 and 2of law no. 4182/2013. The aforementioned arrangements shall be based on the law asappropriately amended and on the Regulations issued by ELSTAT (Regulation on StatisticalObligations of the Agencies of the EL.S.S. and Regulation on the Operation andAdministration of ELSTAT). Memoranda of understanding between the Ministry of Financeand ELSTAT will be agreedOther Actions1. Government will fully honour the Commitment on Confidence in Statistics signed in March2012 by implementing all envisaged actions, including respecting international statisticalstandards; guaranteeing, defending and publicly promoting the professional independence ofELSTAT; and supporting ELSTAT in upholding confidence in Greek statistics and defendingthem against any efforts to undermine their credibility (continuous).2. Government respects the independence of ELSTAT in carrying its tasks and providing highquality statistics. In this regard it fully respects the financial independence of ELSTAT, andprovides all the necessary resources in a timely manner, as approved in the annual budget ofELSTAT, for the agency to complete uninterrupted its tasks. In this respect, Governmentcannot invoke art. 1 of Legal Act of 18/11/2012 and the Ministerial Decree 2/91674 of201/12/2012, while, at the same time, ELSTAT provides to the Hellenic Parliamentinformation for monitoring the execution of its budget as provided for in the Regulation of theParliament (Article 31A) and the Statistical Law of Greece (Article 16) (continuous).3. Clarify that ELSTAT determines the nature/qualifications of its staffing needs and simplify theprocess for transferring staff to ELSTAT. The law on statistics shall be amended so that (a) thetransfer of personnel from other government entities to ELSTAT according to article 20 para.3 of law no. 3832/2010 shall be made by decisions of the competent Minister for the entitywhere the transfer originates and the President of ELSTAT; (b) it is clarified that the powersof the President of ELSTAT, as laid down in law no. 3832/2010, include the power to specify,pending the revision of the organogram of ELSTAT, the subjects of the permanent posts of theDepartment of Research and Studies of ELSTAT, the number of such posts allocated to eachsubject, the relevant formal and substantive criteria and qualifications for employment in suchposts and all other relevant matters, and issue the relevant call for application accordingly,notwithstanding the remaining competences of the Supreme Council for the Selection ofPersonnel (ASEP) with regard to the application of law no. 2190/1994 (April 2014).9.2. Other institutional requirements1. All actions attributable to public Authorities should be in compliance with the rules on freemovement of capital (TFEU, Article 63) (continuous).217
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OUTLINE OF THE REPORTEXECUTIVE SUMM
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LIST OF GRAPHSGraph 1. Economic cli
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ACKNOWLEDGEMENTSThe report was prep
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European CommissionThe Economic Adj
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1. INTRODUCTION1. INTRODUCTION1. Th
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Chart 18Graph 13.1. Distance to Fro
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ANNEX 2: MACROECONOMIC FORECASTANNE
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ANNEXTable B1: USE AND SUPPLY OF GO
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ANNEXTable C1: FISCAL ACCOUNTS AND
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