IMF judgements on whether government austerity programmes can be successfully implemented are carefully followed by international financial markets. Markus Hinterleitner, Fritz Sager and Eva Thomann analyse the way the organisation has judged the credibility of austerity programmes in 14 European countries. They find that the IMF considers implementation credibility in its evaluations of austerity programmes, and uses these to […]
Greece’s creditors are paying the price for not relaxing their conditions prior to the 2015 election
Greece has submitted new proposals to its creditors in an attempt to finally end the deadlock over the release of further bailout funding. Stephanie J. Rickard writes that the present impasse could have been avoided if the strategy pursued by the International Monetary Fund in previous loan programmes to other countries had been repeated. Drawing on a study of […]
In past decades, the International Monetary Fund has had a potent reputation, especially in the developing world. In its programmes in Europe, however, the IMF has had to take a back seat to the desires of the European Commission and the European Central Bank, whose policies have thus far been less than successful. In light of this, Sony Kapoor makes […]
The second Greek rescue programme was not merely late, but also insufficient, making a third programme inevitable.
Last week the IMF published a review of the financial assistance given to Greece during its debt crisis. One of the key limitations identified in the report was that debt relief for the country was provided far later than it should have been. Waltraud Schelkle writes on the fallout from the report, which generated angry responses from both the European […]
Brussels blog round-up for 1 – 7 June: IMF admits mistakes in Greek bailout, Brussels vs Brussels, and a red card for EU legislation?
Chris Gilson takes a look at the week in Brussels blogging. The EU centre and the crisis One of the main stories this week is the IMF’s admission that it made mistakes in the way that it and its Troika partners of the EU and European Central Bank (ECB) carried out Greece’s first bailout in 2010. The European Commission strongly disagreed […]
Competing bureaucratic mandates have produced a ‘clash of organisations’ that impedes effective crisis management in Europe.
How does regional economic integration impact upon global economic governance? André Broome examines the evolution of bureaucratic cooperation between the International Monetary Fund (IMF) and the European Union between the signing of the Maastricht Treaty in 1992 and the launch of the euro in 1999. He finds that the exercise of informal influence by advocates for change within international organisations […]
The troika should recognise the efforts made by Portugal to rebalance its finances and adjust the country’s bailout conditions.
In May 2011 Portugal negotiated an IMF-EU bailout package of 78 billion euros, designed to help the country stabilise its finances. In return Portugal agreed to implement a number of reforms, with a target to reduce its budget deficit to 2.5 per cent by 2014. Paulo Trigo Pereira assesses the country’s progress over the last two years, and suggests some […]
Politicians in Cyprus need to move on from the ‘blame game’ for the country’s economic woes if they are to make badly needed economic reforms.
With massive amounts of non-performing loans, a high debt-GDP ratio, and rising unemployment, the Cypriot economy now faces painful but necessary measures to kick start recovery. Adonis Pegasiou argues that these badly needed reforms are being stalled by rows between the government and opposition parties who refuse to share the blame for Cyprus’ economic troubles. The greater they delay, however, […]
The Greek government’s target of zero public sector layoffs and the troika’s of 150,000 over ten years are both ultimately self-defeating.
The new Greek government recently announced that there would be no layoffs in the public sector, flying in the face of the country’s agreements with the IMF and the ECB to implement public administration reforms. For Kevin Featherstone, the futility of this target is matched by the troika’s (the ECB, EU, and IMF) demand for 150,000 public sector job cuts […]
How Argentina’s provincial governments operated, after the country’s debt default in 1998, has many possible lessons for Greece now
The prospect of a Greek exit from the Euro, or of Greece defaulting on its government debts, has created huge anxiety because both appear to be steps into the complete unknown. However, Mark Hallerberg argues that looking at the potentially similar case of Argentina’s debt default can suggest interesting temporary solutions. From 1998 to 2001 Argentina’s provinces coped with many […]
More than a week after Greece’s elections, a political stalemate still stands, with no party able to form a stable government. Nikitas Konstantinidis argues that the demands placed on Greece from international organisations such as the IMF and the EU have strained its political system to a near breaking point. The solutions to Greece’s crisis now rest with Paris, Berlin […]
The consequences of a Euro collapse for both the Eurozone’s core and periphery are so dramatic, and their ramifications so uncertain, that all efforts should be made to shore up the European Monetary Union.
What is the solution to the Eurozone crisis? It is certainly not in allowing the Euro to weaken or collapse, according to Manuel Muniz and José Carlos Alcázar. They argue that Europe has the capacity to fix the Eurozone, and that Northern European economies must accept that they need to provide the necessary resources to help others those in the […]
Sofia Vasilopoulou and Daphne Halikiopoulou reflect on last week’s elections in Greece, finding that voters have deserted the more centrist parties that have been popular in the past, in favour of parties on the extreme right and left. Divisions between parties over Greece’s bailout and austerity mean that the formation of a coalition government is unlikely; new elections in June are […]
EU and international support for Bosnia and Herzegovina must go hand in hand with further internal reforms
Bosnia and Herzegovina has sought greater integration with the EU for the best part of a decade, but the country has been found wanting due to internal problems such as corruption and human rights. Maria-Antoaneta Neag argues that the country’s new government has made some promising moves towards further reforms which may be cause for cautious optimism within the EU. […]
The financial institutions overseeing the Greek bailouts are ignoring the domestic impacts of austerity measures
In the aftermath of the second Greek bailout, Kevin Featherstone argues that the EU and IMF are obsessed with Greece’s budget balance and are taking little regard for the domestic impacts of austerity. Who is rescued by the bailouts of the European debt crisis? The question won’t go away. Last month, Greece was granted a second bailout in order to avoid a […]
Ahead of an LSE debate tonight on Greece’s economic crisis, Vicky Pryce reflects on what has led to the current situation, how Greece might return to growth, and whether or not the Euro has a future in its present form. What do you think has led to Greece’s current crisis? Do you think the EU could have intervened earlier to […]
Brussels blog round up for 17-23 March 2012: The European Parliament drags its feet on EU wide constituencies, Ashton is criticized, and the IMF demands more guarantees on Greece.
Chris Gilson and Julian Kirchherr take a look at the week in Brussels blogging. The EU Centre Spain has now come under fire for its use of European Union (EU) structural funds. This indicates that European Union regional spending is in urgent need of a radical overhaul, argues Open Europe Blog. The German Marshall Fund Blog discusses China’s dispute with the EU, Japan […]
Recent political developments mean that Greece is no longer on the brink of economic collapse. But the European Commission, the ECB and the IMF will be keeping a close watch for some time to come.
The recent crisis of the Greek economy, and the threat of its withdrawal from the Eurozone, was only averted by the rejection of a referendum on the EU bail-out and the resignation of the country’s prime minister. Kevin Featherstone argues that, while the situation has now stabilised, instability and uncertainty still remain. European and global economic institutions will be keeping […]