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The Eurogroup on Greece: Debt Relief with a Fiscal Straitjacket

Zettelmeyer, Jeromin, (2017), «The Eurogroup on Greece: Debt Relief with a Fiscal Straitjacket», Peterson Institute for International Economics, 20 June

Greece’s latest deal with the Eurogroup—the group of eurozone finance ministers—is bigger news than you might think from the press reactions so far. As expected, Greece got its next disbursement of funds to avoid default, the International Monetary Fund (IMF) gave a symbolic stamp of approval, no actual debt relief will transpire until the end of Greece’s EU-supported reform program, and the IMF will not be prepared to disburse until that happens (if at all). This feels like business as usual. But there is more to the story.

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