According to the European Commission Report on Stability and Growth in the Eurozone, unveiled yesterday, the Greek economy continues to contract and short-term growth rates have been revised downwards.

The recovery announced for next year will be further delayed with, a stagnation of activity in 2013, while projections pointi to wide fiscal gaps in 2013–14. It is only in 2014 that positive annual growth rates are expected to return.

Greece made mixed progress towards achieving the ambitious objectives of the first adjustment programme, yet it managed to reduce the general government deficit between 2009 and 2011, while working towards achieving the environmental goals of Europe 2020.

The report highlights that despite the major economic downturn, Greece has committed itself to fulfilling the obligations stemming from the Euro Plus Pact.