According to an exclusive Reuters report, Brussels is considering stopping Troika’s operations in overseeing the economic reforms in Greece in order to aid Athens in executing its plans to strengthen the country’s economy in exchange for the gradual reduction of the Greek debt.
Even though the discussion is still at an early stage, it is expected to flare up as Greece and its partners in the Euro zone are planning a new course for the country, as the second bailout program is coming to a close at the end of 2014.
According to Reuters, “dismantling the troika, a trio made up of the European Commission, European Central Bank and International Monetary Fund and likened by some in Greece to the German Nazi occupation, would likely be central to the new plan for Athens.”
After Ireland and Portugal exited their bailout programs, Troika has only been active in Greece and Cyprus and many experts believe that Greece will be needing a new aid package.
However, changing to a “reform-for-debt-relief” program that would require less supervision could reduce public reactions and strengthen the coalition government against SYRIZA, added Reuters.
The plan involves the replacement of Troika with a special European Commission task force which would perform biannual instead of quarterly checks, “provided Greece does not require fresh funds.” In return, Greece will have to commit to a six-year reform plan, the achievement of which will be rewarded with a reduction of the country’s debt, by extending the repayment period.
“There must be Greek ownership of the reform. The Greeks have until October to come up with a program, which would be decided by December for the start of 2015,” noted an official familiar to Reuters.
On the other hand, the IMF could continue its own program until 2016, continuing “to exert influence on Athens.”
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