Does the end of ‘aid’ to Greece signal recovery?

According to Pierre Moscovici, the end of the aid program will mean that the crisis in Greece is over. 

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Heads of financial departments of the Euro area countries agreed on the the best way to end providing financial assistance to Greece, said the head of Eurogroup Mario Centeno.

Centeno said, following the meeting in Luxembourg at a press conference, that it was confirmed that Greece fulfilled all the conditions for providing assistance, “which indicates the end of the program (financial aid )“.

The statement of the Eurogroup says that as a “pillow of stability” of Greece as the last tranche will be paid 24 billion euros, which will have to meet its financing needs for 22 months.

European Commissioner for Economics and Finance Pierre Moskosvici wrote on Twitter: “Today, eight long crisis years have come to an end for Greece, as for the entire Eurozone, which is symbolic.”

According to the European Commissioner for Economic and Financial Affairs Pierre Moscovici, the extension of the foreign aid program for Greece is impossible. As the media official said on the sidelines back in April at the spring session of the governing bodies of the IMF and the World Bank in Washington, in principle there is no other scenario than the timely and successful termination of the Greek aid program.

According to Pierre Moscovici, the end of the aid program will mean that the crisis in Greece is over. At the same time, the European official is sure, “the Greeks will be glad to know that the country has emerged from the crisis and is capable of economic growth and job creation”. Greece has been in the foreign aid program since 2010 – the country was provided with assistance from international institutions three times in exchange for strict measures related to budgetary discipline. The first two programs were completed. The third program should end in August 2018, after which Greece will return to the debt capital markets.

Over this period of eight years, Greece has bore the brunt of the EU’s fiscal  miscalculations, moral hazard, and beyond. The Greek financial crisis did not originate in Greece, and is not the product of decisions made in Greece or by Greeks.

 

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