IMF: negative impact of Greece on the EU economy reduced

IMF: negative impact of Greece on the EU economy reduced


In the report of the International monetary Fund said that the negative impact on the European economy has been reduced as a result of agreements through the European stability mechanism in August.

WASHINGTON, 30 Oct. Risks for the European economy, associated with unstable economic and political situation in Greece, were reduced as a result of detention by the Greek authorities agreement with the European Union about the opening of a new lending program in August, but not offset, according to analysts of the International monetary Fund (IMF).

“The negative impact (on the European economy — ed.), associated with events in Greece, was reduced as a result of agreements through the European stability mechanism (ESM) in August, but continued political uncertainty means that it (the effect — ed.) remains a possible source of new tensions on the market”, — stated in the IMF report, prepared ahead of the meeting of the members of G-20 in Turkey from November 15-16.

According to an earlier IMF review, the most akreditavimo countries in the European Union from the calculation of debt to GDP are Greece and Cyprus. The latter, however, while successfully implementing the program of economic reform. Greece all summer was on the verge of default and leaving the Euro zone, but the result of difficult negotiations was approved a new bailout program of up to 86 billion euros in exchange for the adjustment of the economy.

Memorandum on the third assistance programme was ratified by the Greek Parliament on 14 August, then approved by the parliaments of several European countries. However, due to political instability in the country the program was under threat. The discontent in Greece part of the electorate by the actions of a government that has made concessions to the creditors, was forced to hold early elections in the country.

SYRIZA party Alexis Tsipras reaffirmed the trust of the electorate, having won a victory at early parliamentary elections in late September. Wing dissatisfied with the agreement before the elections of deputies broke away and founded his own movement, which, however, did not overcome the three-percent barrier and has passed in Parliament.

The experts noted that this does not mean final stabilization, especially that the country will have to implement unpopular economic reforms. Commenting on the victory of the ruling party, the Executive Director of the IMF Christine Lagarde expressed the hope that the Tsipras government will be able to normalize the economic situation and spend and let the hard, but necessary changes.