This report discusses progress by Greece in the context of its economic adjustment programme. It assesses compliance with previously agreed requirements and elaborates on the policies agreed between Greece and the Commission, ECB and IMF staff teams at the moment Greece shifts to a second programme of financial assistance. Like the first programme, financing will be provided by the euro-area Member States and the IMF. However, the financing vehicle of the euro-area Member States will be the EFSF, rather than bilateral loans as in the first programme. From the IMF side, financing shifts from a stand-by arrangement (SBA) to an extended fund facility (EFF), which allows for a longer repayment period. Progress is assessed in relation to the key objectives of securing fiscal sustainability, safeguarding the stability of the financial system, and boosting competitiveness, potential growth and jobs, through structural reforms. The assessment is based on the findings of the joint Commission/ECB/IMF mission to Athens on 17 January-9 February 2012.