European Stability Mechanism, (2016), “Annual Report 2015”, Ιούνιος
The year 2015 was a difficult but also successful one for the European Stability Mechanism (ESM). Greece was the chief challenge. While Cyprus emerged strengthened from its ESM loan programme in March 2016, and the other former ESM or European Financial Stability Facility (EFSF) programme countries shone as economic bright spots, Greece remained an exception. At the start of 2015, Greece’s second programme was ongoing, following an extension at the end of 2014. In January 2015, a new government was elected with a mandate to search for an alternative way to deal with Greece’s financial problems. This effort collapsed in June with the expiration of the second programme without a final disbursement or an immediate follow-up programme. This ultimately fruitless pursuit of other options in the first half of 2015 resulted in a severe setback for the Greek economy, culminating in bank closures and capital controls and undoing much of the good achieved from earlier reforms. Reforms came to a halt during this period; some were even rolled back. For example, Greece failed to put into law the legislation needed to implement pension reform and it weakened the tax administration reforms. The underlying positive trend as regards the fiscal balance was reversed and the deficit widened again. All this would later require painful new steps. In addition, the general government arrears rose by more than 50% between December 2014 and July 2015, taking a further toll on the economy.
Σχετικές αναρτήσεις
- Sachs, Jeffrey, (2015), “Statesmanship and the Greek Crisis”, Project Syndicate, 7 Ιουλίου
- Darvas, Z. (2015) “The maths behind an amended Greek plan – additional ESM financing would allow the Greek primary surplus to be lowered to 3% of GDP”, Bruegel Institute, 11 Φεβρουαρίου