An EU official has told IFLR that
initial difficulties in understanding the limitations of the
Greek state may have stood in the way of the progress of the
country's bailout programme.
Greece is set to exit its eight-year long
bailout programme after reaching an agreement with the European
Central Bank (ECB) on its third bailout package last week. The
Greek economy may be returning to stability after a tumultuous
period but the ECB may have some lessons to learn if another
debt crisis happens in the future.
"We got better by stepping up technical
guidance; on all key reforms we provided financial support and
technical assistance, but it would have helped if we were aware
of their capacity earlier," said the EU official.
The eight-year long programme brought a period of
unprecedented austerity measures. The first bailout programme
was accompanied by a huge privatisation push, together with
cuts to monthly pensions by...