Eyes are on Greece today ahead of the first test this week over the capacity of its austerity measures. The EU-led mission is preparing to test the conditions in Greece ahead of approving the second batch of the three-year 110 billion euro bailout.

Expectations are for the EU and the IMF to praise the progress and cite more work needed to control the second largest deficit in the euro area. George Papandreou already raised taxes and cut wages and overhauled the state-run pension system while suffering months of strikes and turmoil. Still they deal with the highest inflation rate among the EU 27 with falling revenue below target and the bloc while the IMF predicted the economy will shrink by as much as 4.0% this year.

According to the IMF spokeswomen Jennifer Bechman, the EU and the IMF will hold a press conference between August 04 and August 06 to discuss the latest developments in Greece.