The Limited Times

Now you can see non-English news...

Twelve years after the first euro crisis, Greece is no longer under EU financial supervision

2022-08-20T13:18:44.448Z


After 12 years, Greece is no longer under EU financial supervision. Since 2010, the euro partners and the IMF have saved the over-indebted country from national bankruptcy several times. Greece received almost 300 billion euros - and complained about "financial waterboarding".


Enlarge image

Faces of the first euro crisis:

The euro partners like Germany (in the picture the finance minister at the time ,

Wolfgang Schäuble

) saved Greece from national bankruptcy by granting billions of new loans.

Greece's then Finance Minister

Iannis Varoufakis

(right) accused the EU partners of financial "waterboarding" and called for complete debt relief

Photo:

FABRIZIO BENSCH / REUTERS

Prime Minister Kyriakos Mitsotakis said in Athens that the end of financial supervision marks the end of a painful period for Greece that has led to economic stagnation and a division in society.

He now promised his compatriots a new beginning "full of growth, unity and prosperity".

During the financial and debt crisis, the euro partners and the International Monetary Fund (IMF)

had saved Greece from national bankruptcy several times since 2010 with

loans totaling almost 289 billion euros .

The third loan program for the heavily indebted country ended in August 2018.

Greece left the European Stability Mechanism (ESM) but remained under surveillance.

The debt crisis and the strict austerity measures imposed by international creditors resulted in drastic losses for many Greeks.

The conditions for the bailout loans were massive cuts in pensions and salaries, the monthly minimum wage fell to less than 600 euros at the time.

There were also tax increases and privatizations.

The Greek economy shrank by more than 25 percent, unemployment rose to almost 28 percent and skilled workers left the country in droves.

"Today's Greece is a different Greece," said Mitsotakis.

Greece has recently recorded strong economic growth and a significant drop in unemployment.

EU Economic Commissioner Paolo Gentiloni said the end of financial supervision over Greece was also "the symbolic conclusion of the most difficult time the euro zone has ever known".

The strong joint response to the corona pandemic has shown "that Europe has learned the lessons from this crisis".

Solidarity and unity are also important in the current economic crisis.

In the meantime, the euro countries no longer look so closely at Greece, but rather focus on Italy, which is heavily indebted.

Observers fear that slowly rising interest rates in the euro zone could put Italy under severe pressure.

The European Central Bank (ECB) has therefore already launched an aid program that will allow it to continue buying Italian government bonds and prevent the risk premiums for Italian bonds from rising too much.

la/afp

Source: spiegel

All news articles on 2022-08-20

You may like

News/Politics 2024-03-11T07:27:53.146Z

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.