User:MorgianeNoel/sandbox

Background
Before the Greek crisis

The ‘Troika’ or the "European Troika" is a word commonly used in the economic history of the European Union. As definition a troika is a triumvirate constituted by the European Central Bank, the European Commission and the International Monetary Fund. The Troika was created to coordinate provision in the case of a funding to enhance domestic governments by providing support.These institutions owned a wide influence and improved their power through time. They implemented a strong austerity program for the adjustement of Greek fiscal measures. The political impact of the austerity imposed on countries of the EU periphery ,which were confronted with important debt, led to "a predominant economic and social dislocation ".

The evolution of the Troika

The origin of the European troika can be traced back to the Greek loan package in May 2010 and the EFSF. The role of the three members were distinct: the IMF co-financed the loans for Greece, the ECB focused its competences on the banking system and the Commission worked on economic reforms with the IMF. The troika solution brought controversy into the Euro crisis' solution following the Lisbon Treaty ,where European institutions increased democratization among the institutional landscape of the European Union. At this time, the EU was more technocratic and emphasised the domination's feeling of the Troika mechanism. During the crisis period Germany played also a predominant role and took power to rebalance its national interests and the European interests. The European strategy was implemented with the aim to reduce the Greek fiscal deficit from 15% to 5%. In 2015, the GDP of Greece remained stagnant comparatively to 2009 and the loans appeared as not sufficient to attempt the fiscal aims fixed by the troika: 90% of the amount payed interests. The support of social benefits and wages was cleary inexistant to deal with the crisis. With a decreasing social situation and a weak domestic production, the Greek debt grown and overtook the GDP rate. For the creditor countries, one of the most important aspect and efficient condition for the bailout was the liberalisation of product and the labour market on Greece. Although the plans affected to create a stronger economy in Greece leading to a certain performance, they weren't efficient in short run.This case showned that these reforms took in a context of fiscal austerity ,as the Greek situation, could lead to negative effect and didn't provide improvement in short time.