Lessons learned for ECB after Greek bailout ends

Author: Olly Jackson | Published: 29 Jun 2018

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...