Decision group formed by the European Commission, the European Central Bank and the International Monetary Fund whose usage arose in the context of the “bailouts” of Cyprus, Greece, Ireland, and Portugal necessitated by their prospective insolvency caused by the recent global financial crisis of 2008.
Published in Chapter:
Attempting an Assessment of the MoUs' Role in Confronting the Greek Crisis
Charalampos K. Arachovas (Panteion University of Social and Political Sciences, Greece & Institute of Commerce and Entrepreneurship (IN.EM.Y. of ESEE), Greece) and Manolis M. Manioudis (University of Crete, Greece & Institute of Commerce and Entrepreneurship (IN.EM.Y. of ESEE), Greece)
Copyright: © 2021
|Pages: 17
DOI: 10.4018/978-1-7998-4933-9.ch013
Abstract
This chapter wishes to analyze the full impact of the three (3) Memoranda of Understanding signed between the Greek corresponding governments and the European Commission, ECB, and IMF representations. The first Memorandum was considered as necessary due to Greece's inability to access international financial capital, while the other two (2), which followed, tried to correct “implementation errors,” control for “ownership” of the programs, and confront the prolonged and severe economic crisis and unemployment derailment. This chapter will present a series of key macroeconomic and microeconomic figures and will argue that despite the fiscal consolidation, which came at an extremely high social and economic cost, Greek economy still has a lot challenges to tackle and serious impediments to overcome. It will also shed some new light on whether Memoranda actually helped Greece to recover or used a whole country as a “guinea pig” and as an example of compliance, allowing the final reader to decide.