EU auditors say Greek bailouts were ill planned and failed to anticipate recessionary impact

EU auditors say Greek bailouts were ill planned and failed  to anticipate recessionary impact
A Greek pensioner awaits his pension

Massive bailout programmes for Greece were not properly planned and failed to anticipate the recessionary effect of austerity measures, auditors from the European Union’s executive Commission said.

A report published Thursday by the EU’s European Court of Auditors criticised the first and second Greek bailouts, which were backed by the International Monetary Fund and launched in 2010 and 2012.

Greece is nearing the end of its third consecutive bailout programme next year, following years of gruelling austerity measures that are set to continue until 2020.

Greece now has a national debt touching 180% of its gross domestic product and unemployment higher than 20%.

"Despite a growing number of conditions, the first and second (bailout) programmes did not adequately prioritise their relative importance and they were not embedded in a broader strategy for the country," the report said.

Creditors initially estimated that Greece would return to growth in 2012, the report noted.

Instead, the country lost more than a quarter of its economic output and has only emerged from a long period of stagnation this year.

In 2013, the IMF also admitted it made unrealistic assumptions about the Greek economy, failing to forecast the extent of the country’s crippling recession.

A study published Thursday by the Federation of Greek Enterprises found that some 360,000 Greeks - just over a third of the jobless total - have been unemployed for more than four years.

As the country’s left-wing government prepares to end Greece’s third bailout in August 2018, finance minister Euclid Tsakalotos announced this week the next pre-exit bond issue would not take place until next year, following a successful three billion euro (£2.7 billion) bond sale of five-year notes in July.

This week, Greece’s Public Debt Management Agency launched a bond swap worth nearly 30 billion euro (£27 billion) in a process that ends on November 28.

AP

More on this topic

Supporters of biological diversity welcome  decision hailed as a victory against agribusiness giantsSupporters of biological diversity welcome decision hailed as a victory against agribusiness giants

Irish Examiner View: EU to Ireland - must try harderIrish Examiner View: EU to Ireland - must try harder

EU calls for more organic farming and improved animal welfare in blueprint for greener futureEU calls for more organic farming and improved animal welfare in blueprint for greener future

EU marks 70 years since its foundation on Europe dayEU marks 70 years since its foundation on Europe day


More in this Section

Dominic Cummings has made ‘mockery’ of public health advice, say expertsDominic Cummings has made ‘mockery’ of public health advice, say experts

Boris Johnson and Dominic Cummings say coronavirus affected their eyesightBoris Johnson and Dominic Cummings say coronavirus affected their eyesight

Memorial Day like no other for Americans under coronavirus restrictionsMemorial Day like no other for Americans under coronavirus restrictions

Trump honours fallen soldiers on Memorial DayTrump honours fallen soldiers on Memorial Day


Lifestyle

Simple storage solutions for the DIY rookie.8 simple steps to putting up a shelf

Yes, many of us have succumbed to the ‘Covid stone’ and may be trying to lose it but we all need a treat from time to time. Our recipes here incorporate tasty fruits like blueberries, apricots and almonds while Derval’s lime, chocolate and oat biscuits are a delicious and yet healthy sweet treat option.Food and Fun: Take some time out for treats

“Do you know what penguins smell like?” Landscape painter Nicholas Romeril asks, and then laughs at his own question.Nicholas Romeril: Antarctic ice-olation was the perfect training for lockdown

“I am Iron Man.” Although not the most iconic of lines in cinema history, Tony Stark’s final words were repeated across the internet with glee by Marvel fans after the Infinity Saga came to a close. Like one of Dr Strange’s portals, the Marvel cinematic universe had come full circle.GameTech: Iron Man looks a solid bet with VR version

More From The Irish Examiner