Report explains: The Greek bailout went pretty wrong

The memory of the duration of the dispute of the Euro States, with the Athenians on the left government in the year 2015 is faded, as is the fact that it would

Report explains: The Greek bailout went pretty wrong

The memory of the duration of the dispute of the Euro States, with the Athenians on the left government in the year 2015 is faded, as is the fact that it would have come in that year, almost to the Grexit. The then Finance Minister Wolfgang Schäuble (CDU) has called for the temporary exit of Greece from the Euro area at the time. It is not come – most recently on the Initiative of the German Chancellor – in a different way: In the summer of 2015, a third aid programme for Hellas, it was decided; it was the total volume of aid loans to the country to a total of 330 billion euros are on the rise. Especially the loans that the third programme will have very long run times. Were connected to you – like all of the other programs for Greece, but also Portugal, Ireland, Cyprus and Spain – with more or less far-reaching reforms and Austerity measures.

Werner Mussler

economic correspondent in Brussels.

F. A. Z.

Many of the programs criticism is worthy of. This was the result of an evaluation report by a group of experts commissioned by the governors of the Euro-crisis Fund, the ESM has developed. The Chairman of the Board, the former EU monetary Affairs Commissioner, Joaquín Almunia, expressed on Thursday after the annual meeting of the ESM Board of governors of the hope that the report would help "to avoid significant mistakes of the past" in the future. ESM chief Klaus Regling said that they wanted to learn from the outcome of the report. The ESM Board of governors consists of the Euro Finance Ministers, the members of the Euro group.

the report criticizes especially that the Greek program had to be adapted because of a long-term perspective and clear strategic goals. Contributed to several EU-institutions – in addition to the ESM, the EU Commission and the European Central Bank (ECB) and the International monetary Fund (IMF) were involved in is not always a clear delineation of responsibilities. In addition, the decisions on the fulfilment of reform commitments would have, and the share of loans to a long time.

requirements oriented to little of need for economic reforms

As generally problematic, the experts criticise the fact that the pads have to be strong on Austerity and too little on the need for economic reforms-oriented. Only the latter could permanently generate stronger economic growth and thus help to improve the sustainability of government debt. Particularly critical, the experts group sees the open dispute between the EU institutions and the IMF in 2016. The latter had demanded that a partial debt restructuring and, above all, against schäuble's resistance – enforced.

The reviewers criticize also, the often protracted disbursement of loans was "oriented more to the acute Greek financial situation as to the implementation of economic reforms". The ESM is not able to assess was whether Athens has implemented the agreed reforms. "This has aggravated the Problem of poor program designs, and the lengthy decision-making processes."

Open until today, as the Greek society could be brought to comprehend the international reform programs in General, as an important prerequisite for the economic and political recovery of the country. "Until today, no generally accepted analysis exists in Greece and why the country is plunged deep into the crisis," said Almunia. Accordingly, no Greek government had presented a coherent strategy for growth.

Updated Date: 12 June 2020, 08:22

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