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The IMF’s New Role in Greece Proves Its Value for Europe and the United States

Gelpern, Anna, (2017), “The IMF’s New Role in Greece Proves Its Value for Europe and the United States”, Peterson Institute for International Economics, 27 Ιουνίου

Greece’s economic problems are far from solved, but the International Monetary Fund (IMF) deserves part of the credit for the glimmers of progress on official debt relief in the Eurogroup announcement on June 15(link is external). The IMF is expected to issue its “approval in principle”(link is external) for Greek policy commitments under the European Stability Mechanism (ESM) program, but it will not contribute money until it gets more comfort on debt relief from European governments and institutions. On balance, this makes the IMF a force for good in Greece and in Europe. The Fund’s hard line may be an effort to compensate for past missteps; now it is doing the right thing. It should remain engaged in Europe, and the United States should support its engagement as an independent source of policy expertise and funding.

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