The Economic Adjustment Programmes agreed for Greece after the financial crisis broke out provided short-term financial stability and made some progress on reform possible, according to a new report from the European Court of Auditors. But the Programmes only helped Greece recover to a limited extent and, as of mid-2017, had not succeeded in restoring the country’s ability to finance its needs on the markets.
The first Economic Adjustment Programme was for €110 billion in 2010, with two further Programmes for €172.6 billion in 2012 and €86 billion in 2015. The Programmes were aimed at establishing a stable economic situation in Greece by covering the economy’s financing needs in return for wide-ranging structural reforms, thereby preventing contagion across the rest of the euro area.
“These programmes promoted reform and avoided default by Greece. But the country’s ability to finance itself fully on the financial markets remains a challenge”, said Baudilio Tomé Muguruza, the Member of the European Court of Auditors responsible for the report.