Greece ‘a normal country’ as bailout ends
Greece completed eight years of European Union enforced bailout torture yesterday but Athens’ finances will remain under the watchful eye of Brussels for decades to come.
Pierre Moscovici, the EU’s commissioner for economic and monetary affairs, told reporters in Brussels that after a ‘‘deep’’ and ‘‘violent’’ crisis, Greece was now a ‘‘normal country again’’, even though it will still be subject to an ‘‘enhanced surveillance framework’’ that begins today.
The surveillance, which is more draconian than the fiscal rules adhered to by other eurozone nations, is meant to ensure that future Greek governments stick to their reform commitments. For example, Greece has agreed to keep a budget surplus until 2060, binding the hands of future governments.
The country received tens of billions of euros to fix its economy and prevent it crashing out of the euro but at the price of heavy austerity that saw pensions slashed, public sector jobs cut and huge tax increases.
Some €288.7bn (NZ$500b) in loans have been provided to Greece since 2010, including €256.6bn from the EU and €32.1bn from the International Monetary Fund.
The loss of a quarter of Greece’s national output over eight years, the emigration of some 300,000 of the country’s best and brightest, and unemployment of about 20 per cent give Greeks little reason to celebrate their exit from a third bailout programme, despite some growth in employment and the economy and a budget in trade surplus.
Moscovici, a former socialist finance minister of France, said that such a surveillance framework was ‘‘significantly different’’ than the three bailout programmes endured by Greece since 2010.
He revealed that Greek reforms would be scrutinised four times a year.
Two of those inspections would take place as part of the EU’s regular overview of national budgets to minimise embarrassment.
‘‘The commission wants to make it really respectful of Greece’s sovereignty,’’ said Moscovici, who insisted that Greece was now free to direct its own financial policies.
‘‘Let’s not imagine that no discipline is needed,’’ he added in defence of the continued surveillance, before pointing out that Greek public debt remained about 180 per cent.
Moscovici lashed out at the ‘‘false idea’’ that the EU was responsible for the austerity that has crippled Greece. ‘‘I don’t feel like I am a cold man imposing austerity from the outside,’’ he added. ‘‘If Greece had left the euro, the situation would have been much worse.’’
The extensive and painful reforms Greece had carried out had laid the groundwork for ‘‘a sustainable recovery’’, he added. – Telegraph Group