Friday Jul 25, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
MEPs pick holes in bailouts, call for new approach

The troika faced an “immense challenge” in dealing with the euro crisis but the adjustment programs it helped implement in Greece and other countries lacked transparency and were not fully adapted to those states, according to a European Parliament committee, which recommended on Tuesday the International Monetary Fund’s involvement in future bailouts be “optional.”

The Economic and Monetary Affairs Committee in Brussels approved on Tuesday by 31 votes to 10 the findings of a report compiled after several weeks of visits to program countries and hearings in the Belgian capital.

The MEPs acknowledged the pressurized conditions in which the bailouts were put together but their report “denounces the lack of transparency” in negotiations and “deplores the sometimes over-optimistic assumptions made by the troika.” It also “regrets that the programs are not bound by the Charter of the Fundamental Rights of the European Union and the Treaties.”

Apart from accusing the troika of “weak democratic accountability,” the troika inquiry also highlights that national parliaments were given short shrift during negotiations. “When consulted, national parliaments were faced with the choice of eventually defaulting on their debt or accepting memoranda of understanding negotiated between the troika and national authorities,” the report said.

The MEPs were also critical of the role of eurozone finance ministers, saying that the Eurogroup had overstepped its authority despite “not being an official institution of the European Union.”

The report calls for the eurozone to rethink the way it administers bailouts in the future. Apart from limiting the role of the IMF, the MEPs also recommend that the European Central Bank should only be present as a “silent observer” and that the European Commission’s role should be adopted by a “European Monetary Fund.” The parliamentarians call for a proposal for the establishment of the EMF to be made by the Commission before the end of this year.

Future bailouts should also “take into account the quality of employment, social protection, health and education and ensure access for all to the social systems.”

With regards to Greece, the MEPs ask the troika “to address the need to reduce the Greek public debt burden as well as the severe capital outflows from Greece which contribute significantly to the vicious circle of the current economic depression in the country.” Apart from a haircut for Greek bonds, the report highlights other options for restructuring the country’s debt, such as “bond swapping, extending debt maturities and reducing coupons.”

The findings of the European Parliament’s troika inquiry will be put to a plenary vote next month.

ekathimerini.com , Tuesday February 25, 2014 (21:37)  
Greeks less satisfied with their lives, survey shows
Godfather, 35, shot at Karditsa christening dies
EOPYY removes medical tests as part of streamlining efforts
Thousands of dead fish surface in Lake Pamvotis
Troika concludes review in Cyprus
A team of officials from the European Commission, the European Central Bank and the International Monetary Fund concluded a visit to Nicosia, Cyprus, on Friday, for the fifth review of the i...
Bank deposits rise for fourth straight month in June
Greek bank deposits rose in June for the fourth month in a row, central bank data showed on Friday. Business and household deposits rose to 163.2 billion euros ($219 billion) from 162.1 bill...
Inside Business
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
TRACK & FIELD
Athens, the Marathon capital of the world for good
Paco Borao, the man who restored Athens as the Marathon capital of the world with the establishment at the Olympic Sports Center of the headquarters of the International Association of Marat...
Inside Sports
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the country’s fate since then are unable to act their age. For decad...
EDITORIAL
Putting the past behind us
Democracy was restored in Greece 40 years ago and the country owes a debt to Constantine Karamanlis for handling the transition and anchoring the country firmly in the safe port of Europe wi...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ranieri says he has little to change in Greek national team
2. Greeks less satisfied with their lives, survey shows
3. Troika concludes review in Cyprus
4. Godfather, 35, shot at Karditsa christening dies
5. EOPYY removes medical tests as part of streamlining efforts
6. Bank deposits rise for fourth straight month in June
more news
Today
This Week
1. Draghi safety net becoming blindfold as bonds soar
2. Greek coast guard picks up 77 migrants off Myconos
3. Aegean Airlines resumes flights to Tel Aviv
4. Police report points to less crime in 2014
5. Thousands of dead fish surface in Lake Pamvotis
6. EOPYY removes medical tests as part of streamlining efforts
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Unequal after death
5. Greek banks able to tap investors after stress tests, HFSF Says
6. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.