In apparent panic at the prospect of a SYRIZA election victory, Brussels is considering stopping Troika’s operations in overseeing the economic reforms in Greece.
According to an exclusive Reuters report, even though the discussion is still at an early stage, it is expected to flare up as Greece and its partners in the Euro zone are planning a new course for the country, as the second bailout program is coming to a close at the end of 2014.
According to Reuters, “dismantling the troika, a trio made up of the European Commission, European Central Bank and International Monetary Fund and likened by some in Greece to the German Nazi occupation, would likely be central to the new plan for Athens.”
After Ireland and Portugal exited their bailout programs, Troika has only been active in Greece and Cyprus and many experts believe that Greece will be needing a new aid package.
However, changing to a “reform-for-debt-relief” program that would require less supervision could reduce public reactions and strengthen the coalition government against SYRIZA which is leading in the polls, added Reuters.
On the other hand, the IMF could continue its own program until 2016, continuing “to exert influence on Athens.”
See full Reuters report here
Dismantling the troika, a trio made up of the European Commission, European Central Bank and International Monetary Fund and likened by some in Greece to the German Nazi occupation, would likely be central to the new plan for Athens.
Reuters added that “National elections could come as early as next year and a Syriza-led government would present a headache for the euro zone“.
Under the latest thinking, policing by the troika could be replaced by a special task force from the European Commission with biannual check-ups rather than every three months, provided Greece does not require fresh funds.
In return, Athens would commit to a six-year plan of reform, where milestones would be rewarded with debt relief, such as extending the time for repayment, rather than granting additional loans.
The crunch time for these decisions will be later this year, said another euro zone official. “The Autumn will be hot.”