By T. Tsiros
Three types of “supervision” of the Greek economy and the Greek state’s finances are expected to be applied simultaneously after Aug. 20 ,2018, when the current bailout – the third consecutive memorandum since 2010 – officially concludes.
At last word, an “enhanced supervision”, with the prospect of even quarterly inspections by creditors’ auditors, will last until at least until 2022, as the current Tsipras government has committed the recession-battered country to meeting ambitious 3.5 percent (as a percentage of GDP) primary budget surpluses until that time. 2022, in fact, extends well beyond the current coalition government’s mandate, as a regular general election must be declared no later than the autumn of 2019.
As expected, as the years pass, and with fiscal targets and medium-term adjustment goals fulfilled by Greek governments, the framework of supervision will “loosen”.
On the “horizon” at present is a “triple supervision” by the EU Commission, the European Stability Mechanism (ESM) and, by all accounts, the IMF.
