Despite the progress the Greek economy has made in recent years, there are still “excessive imbalances”, according to the European report for the second financial semester.

According to the report, three countries face “excessive imbalances” (Greece, Cyprus and Italy) and ten countries face “imbalances” (Bulgaria, Germany, Spain, France, Croatia, Ireland, the Netherlands, Portugal, Romania and Sweden).

With regard to Greece, it is noted that “while the level of government debt remains high, it is mainly held by official creditors and the funding needs will be relatively low for at least a decade” and underlines that “the rate of debt reduction depends to a large extent on the pursuit of agreed budgetary targets and the implementation of reforms to create a sustainable growth perspective “.

According to the European Commission, Greece’s “excessive imbalances” are “linked to high public debt, high non-performing loans and low growth prospects”.