The credibility of Greece’s international lenders has been substantially tarnished in recent days.
What is coming across is that the troika’s left hand doesn’t know what the right hand is doing and that top officials disagree over the fundamental aspects of the Greek fiscal adjustment program.
Besides examining what went wrong in the past, an urgent discussion is needed at the highest level regarding the program’s principal foundations, the need for further reducing the Greek debt and the way in which the troika operates.
For example, the constant micro-management of every single aspect by the troika could be replaced by an agreement foreseeing that the accomplishment of major targets would be accompanied by simultaneous debt reduction.
We need straightforward, simple decisions in order to avoid repeating the mistakes of the past.