TITLE:
Do Economic Adjustment Programmes Set Conflicting Objectives? The Case of Greece
AUTHORS:
Panagiotis Liargovas, Marios Psychalis
KEYWORDS:
Economic Adjustment Programmes, Greek Crisis Reforms, Fiscal Financial and Competitiveness Policy
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.8,
December
30,
2019
ABSTRACT: Certain EU countries could not counter the effects
of the 2008 global financial crisis. As a result, they lost access to
international markets. The EU attempted to resolve the European financial
crisis by implementing economic adjustment programmes.
Economic adjustment programmes included
financing conditional on the implementation of reforms. All programmes consisted of three main pillars:
Fiscal consolidation, financial stability, and promoting growth and
competitiveness. This article examines whether the objectives set under each
pillar were in conflict with or complementary to the objectives set under other
pillars. Studying the case of Greece, it is concluded that certain economic
adjustment programme objectives and
policies were indeed conflicting, rendering their implementation harder.