Tagged debt

Citizen Correspondent

On Monday, 22 June, there was yet another Eurogroup meeting in Brussels concerning the Greek crisis. But like many previous attempts to reach an agreement, a conclusive decision was again postponed. Meanwhile, in the Greek capital, Athens, people are anxiously waiting for an answer. It is becoming evident that Greece should not have joined the euro the time it did but it is too late to change that. Ordinary citizens suffer and the country is on the brink of collapse, or social unrest. It is clear that European elites must reach some compromise, not for the sake of SYRIZA, but for the people of Greece.

By Clément Fontan

One month ago, the Bruegel institute, a respected and influential EU think-thank, published an opinion piece by former IMF staff member Ashoka Mody. In his excellent analysis, Mody relies on leaked insider information and IMF self-criticism to condemn the Fund’s role in the Greek bailout process from 2010 to the present. In short, he reminds us that the lack of debt restructuring during the 2010 bailout was primarily aimed at protecting the holders of Greek bonds, e.g. the major French and German banks, despite its unsustainability. Then, he underlines that the structural reforms and the budget cuts worsened the economic and social conditions in Greece to such an extent that a second bailout was needed in 2012.

By Panagiota Manoli  and Georgios Maris

Until recently, especially in financial governance issues, studies had paid little attention to the role of the European Parliament (EP), rather focusing on other institutions such as the European Council, the Commission and the European Central Bank. In a chapter that we contributed to a recently published book,* we discuss the role of the EP in the management of the global financial crisis that erupted in 2008 and soon spread into the Eurozone economies.

The European Commission has upped its growth forecasts for the Eurozone and the entire EU after noting the positive effects of the European Central Bank (ECB) debt purchase programme; cheaper oil prices, and the depreciation of the euro. However, this economic improvement will not be uniform across all the member states. Gross Domestic Product (GDP) for the 19 euro members will be up this year by 1.5%, two tenths higher than estimated in February by the EU executive. For the 28 countries in the European Union, the Commission also revised forecasts upwards by one decimal point to 1.8%

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