How the imf and the eu screwed over greece

Thrugelmir

Reputation of the IMF has taken a severe battering.

Little over a year ago, liberals and lefties across Europe applauded a then-defiant Alexis Tsipras and his Syriza government in Greece as they faced off against the Troika – the coalition consisting of the European Commission, the European Central Bank and the International Monetary Fund – which was holding Greece’s economy to ransom. Greece was seen as standing up to the Troika’s ruinous economic policies.
How long ago that feels now. With the establishment still in a tizzy over Britain’s vote to leave the European Union, the Troika’s treatment of Greece has been all but forgotten. However, a new report on the IMF’s handling of the Eurozone debt crisis, when it first flared up in 2010, has brought it all back again. The report, published by the IMF’s own watchdog, the Independent Evaluation Office, reminds us just how egregious the Troika’s actions were in the wake of the Eurozone debt crisis, primarily in relation to Greece.

This report is as much an indictment of the European Union as it is of the IMF. It makes clear that the EU is not a disinterested, technocratic project – it is a political project beholden to a ‘unified’ Europe at all costs. Those who supported Brexit are often castigated as irresponsible for putting politics – namely, the idea that the demos should decide who rules them – before the interests of the UK economy. Yet it is the EU that has created economic ruin in the pursuit of political ends. Fear of the Euro unravelling – the death knell of European integration – resulted in Brussels forcing economic ruin upon Greece. And, for this, the Greek people are still paying a price.

http://www.spiked-online.com/newsite/article/how-the-imf-and-the-eu-screwed-over-greece-troika-euro/18610

Carl31

Good article, if a little obvious

The reason the reason for my Brexit vote, the EU are more worried about making their project work than whether or not it is truly beneficial for the inhabitants, it will end in major economic problems that we dont need to be part of

Thrugelmir

Carl31 wrote: »

Good article, if a little obvious

Wider aspects are that in a 3 year period 80% of IMF funding went to Eire, Greece and Portugal. The RoW didn't get a look in. Seems as if other member states of the IMF aren't happy. With Largarde heading for trial. Reputation may even be more severely tarnished.

stator

A bit silly really. People forget Greece did have a choice. They chose to remain in the Eurozone and accept the Eurozone conditions.
At any time they liked they could have defaulted on all their debts and been thrown out of the Eurozone.
We will never know what the best choice was, but they weren't forced into anything.
If they want full control of their economy again, and the ability to go cap and hand to the IMF without interference from the German hegemony they can still do so. All they have to do is leave the Eurozone.
But you can't have your cake and eat it.

Carl31

stator wrote: »

A bit silly really. People forget Greece did have a choice. They chose to remain in the Eurozone and accept the Eurozone conditions.
At any time they liked they could have defaulted on all their debts and been thrown out of the Eurozone.
We will never know what the best choice was, but they weren't forced into anything.
If they want full control of their economy again, and the ability to go cap and hand to the IMF without interference from the German hegemony they can still do so. All they have to do is leave the Eurozone.
But you can't have your cake and eat it.

maybe they didnt have a choice? the whole point of the EU is to provide financial harmony for its members (supposedly) Greece is the proof of why it doesn't work, letting them leave would be an admission of that, and if they defaulted it would knock on to the other members, which will happen eventually anyway

stator

Carl31 wrote: »

maybe they didnt have a choice? the whole point of the EU is to provide financial harmony for its members (supposedly) Greece is the proof of why it doesn't work, letting them leave would be an admission of that, and if they defaulted it would knock on to the other members, which will happen eventually anyway

All Greece had to do was stop paying it's debts, so that was the choice.
They probably would have been thrown out of the Eurozone, most people expect that would have happened.
I'm not saying it was a good idea, but it was a choice.
Much like if you are drowning in debt and you are offered a bailout by your mum. You either accept her conditions (cancel sky?, sell your car?) or you don't accept the bailout. You can always ask someone else. And you can also go bankrupt and stop paying your debts. All your choice. You can't blame your mum for the financial difficulties just because she's the only one offering you a bailout.

Carl31

stator wrote: »

All Greece had to do was stop paying it's debts, so that was the choice.
They probably would have been thrown out of the Eurozone, most people expect that would have happened.
I'm not saying it was a good idea, but it was a choice.
Much like if you are drowning in debt and you are offered a bailout by your mum. You either accept her conditions (cancel sky?, sell your car?) or you don't accept the bailout. You can always ask someone else. And you can also go bankrupt and stop paying your debts. All your choice. You can't blame your mum for the financial difficulties just because she's the only one offering you a bailout.

i agree, and often use a similar analogy

But surely by doing that, that would show the world the EU had failed to support one its members? they couldn't have that

the sensible solution for anyone in debt would not borrow more to sort themselves out, they would change their habits and work with what they had, and any decent creditor wouldn't lend to them anyway

stator

Greece tried to call the EZs bluff but failed, so it seems the EZ were willing to let Greece default and leave the Eurozone.

rebecca1982

Greece wouldn't never have been allowed to leave anyway. As was said earlier, keeping the project together at all costs.

globalds

stator wrote: »

All Greece had to do was stop paying it's debts, so that was the choice.
They probably would have been thrown out of the Eurozone, most people expect that would have happened.
I'm not saying it was a good idea, but it was a choice.
Much like if you are drowning in debt and you are offered a bailout by your mum. You either accept her conditions (cancel sky?, sell your car?) or you don't accept the bailout. You can always ask someone else. And you can also go bankrupt and stop paying your debts. All your choice. You can't blame your mum for the financial difficulties just because she's the only one offering you a bailout.

This is not a particularly good analogy

Let's make it slightly closer to the the situation.

You are known to be bad at handling money , So bad very few people will lend to you.
Your mum decides to not only help you get a credit card ..But arranges for the credit rating to be based on her good credit history.

You... To no ones surprise max out your card ..And find that your mum now doesn't like being a part of your usual response to clearing your debts .