ESM director claims Greece can emerge from debt crisis altogether if it sticks to agreed reforms

Posted by Christian J. Hadjipateras 14/08/2017 0 Comment(s) Economia Blog,
The Managing Director of the European Stability Mechanism (ESM), Klaus Regling, claimed that Greece can fully emerge from the debt crisis provided it can stick to agreed reforms. He also insinuated that Eurozone countries would be open to the idea of debt relief after the bailout program is due to end in August 2018, but again stressed that this can only be done if the SYRIZA-led government sees through its commitments. 

“In no other country were difficulties so big and the public administration so weak. This is why efforts to stabilize [the country] have yet to be completed after seven years of austerity,” he said in an op-ed published in the German Frankfurter Allgemeine Zeitung newspaper. In the same piece, he reflected on the cases of the Republic of Ireland, Portugal, Spain and Cyprus as proof that necessary financial adjustment programs can bring positive results, although he did admit that Greece was a ‘special case’ given the dire state of its finances at the height of the crisis. Mr. Regling also stated that Greece may not necessarily require all of the €86m from the third bailout program that has been agreed.

The ESM, established in 2012 as a permanent firewall for the Eurozone, to safeguard and provide instant access to financial assistance programmes for member states of the Eurozone in financial difficulty.

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