Greek FinMin: Troika Made Many Mistakes

Stournaras meeting Karas
Greek Finance Minister Yannis Stournaras (left) meeting with MEPs Othmar Karas (center) and Liêm Hoang Ngoc (right)

Greek Finance Minister Yannis Stournaras was very critical of the Troika during his meeting with members of the European parliament, who are monitoring the activities of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) task force operating in EU member states.

Stournaras talked about the significant miscalculations and mistakes that were included in the first bailout package, which had devastating financial and social consequences, while causing delay to Greece’s debt restructuring. There is still an ongoing effort to correct these mistakes with the second bailout, however it is not easy, he said.

In the meeting held with MEP’s Othmar Karas and Liêm Hoang Ngoc, who supervise the European parliament’s Troika monitoring committee, and SYRIZA member of the Greek parliament Nikos Chountis, the minister focused on the incorrect fiscal multipliers used by the Troika. These eventually led in 2012 to a deep recession with a 6.4 percent cut in GDP, a rate which was much worse than that predicted by Greece’s creditors.

The country’s creditors had estimated that Greece would be in growth by 2012, highlighted Stournaras. Futhermore, the Troika’s initial assumption was that the Greek debt would decrease rapidly after 2013, which of course has not happened as the original loans made to Greece by its EU partners had very high interest rates.


  1. Now the Finn-Min Stournaras is fed up with Troika after the MEPs made public they were wrong!! But just 2 days ago both Samaras and Stournaras couldn’t wait to have Troika back to meet them again… What a bunch of Frauds ND & PASOK are!— GET RID OF THEM BOTH !!!

  2. There was a time – roughly between May 2010 and the spring fall of 2011 – when all the world had to worry about was Greece. Then the realization finally dawned that since a Grexit from the Eurozone would kill the EUR and the European integration dream with so much “political capital” invested, crush Deutsche Bank, and bring back the much dreaded (by German exporters) Deutsche Mark, it became clear that there is no fear that Greece, which is now a decrepit shell of a country with a collapsed economy and society in shambles, has now become a slave state to European bureaucrats, business and banks (in Nigel Farage’s words), will never be formally kicked out of Europe and only an internal coup would allow it to finally break free from the clutches of unelected European tyrants. And then the world moved on to more important things: like Japan, China Emerging Markets and how they are all enjoying the Fed’s taper. Sadly, we have to report, that Greece is once again baaaaack.

    According to the WSJ, “top officials peeled away from colleagues after a euro-zone finance ministers meeting in Brussels Monday evening for a secret meeting to discuss mounting concerns over Greece’s bailout.

    WSJ adds:

    High-level officials from the International Monetary Fund, the European Commission, the European Central Bank, senior euro-zone officials and the German and French finance ministers were present, according to people with direct knowledge of the situation. They spoke on condition of anonymity because they aren’t authorized to talk to the press.

    They were trying to figure out how to tackle two issues threatening to unsettle the fragile economic recovery in Greece and the broader euro zone.

    They discussed how to press the Greek government to forge ahead with unpopular structural reforms; and second, how to scramble together extra cash to cover a shortfall in the country’s financing for the second half of the year, estimated at €5 billion-€6 billion ($6.81 billion-$8.17 billion).

    Of course, this being Europe, nothing was decided: “The meeting was inconclusive, the people familiar with the situation said. Talks with the Greek authorities continue remotely—though representatives of the three institutions, known as the troika, have put on hold their plans to travel to Athens. Concerns are growing because Greece faces a large maturity of government bonds in May of €11 billion. The IMF hasn’t disbursed any aid to Greece since July and is €3.8 billion behind in scheduled aid payments. The IMF insists on having a clear view of the country’s finances 12 months ahead, and this condition hasn’t been met.”

    And so the posturing resumes, with the Troika pretending it won’t hand over the funds unless Greece “reforms”, and Greece promising the “reform” as soon as it gets the funds. Nothing new here. What is new, is that finally the facade of Greek sovereignty and independence was stripped away as decisions regarding Greece took place… without
    Greece: “Greek Finance Minister Yiannis Stournaras, who was briefing the
    press in the same building at the time, wasn’t invited.”

    Which is right – after all when a nation is enslaved and has no sovereignty (thanks to the 153 ND/PASOK traitors esp Samaras and Venizelos), it doesn’t deserve to have a voice in its future.