The European Court of Auditors considers that the reforms set in place in the framework of the three Greek bailout plans have had limited effects, in a report on the European Commission's intervention in the Greek financial crisis published on Thursday 16 November.
The Court's analysis focused both on how the three bailout plans were put together in 2010, 2012 and 2015, for €110 billion, €172.6 billion and €86 billion respectively, and on the results in terms of reforms and getting on top of public finances achieved by Athens and its creditors in seven years (see EUROPE 10116).
Although the services of the European Commission were interviewed for the purposes of drafting the report, the European Central Bank (ECB) did not fully cooperate with the Court of Auditors, which has therefore not provided any information about the ECB's role in implementing the programmes.
The auditors, who make no political assessment, observe that when drafting and executing the first bailout plan, the Commission had no experience in this matter and that the terms and conditions of the first two plans lacked precision. It adds that the measures were not prioritised and that there was no clear strategy for Greece. Furthermore, economic projections were not sufficiently documented.
Even so, the auditors consider that although not perfect, the work to draft the third programme, which began in mid-2015, was better documented and set out clear objectives.
A limited impact on reforms. The Court of Auditors, which also looks at the reforms undertaken by Athens in recent years, gives a mixed view of these, particularly in four areas: taxation, public administration, the employment market and the financial sector. It takes the view that the measures implemented have had limited structural effects or were too expensive for the Greek economy. More generally, the auditors consider that in all sectors, a number of key reforms were delayed considerably or were not as effective as anticipated.
When the drafting of this report was completed, the Court took the view that Athens was still not in a position to finance itself on the financial markets, according to Baudilio Tomé Muguruza, the lead author of the report. In the meantime, Greek issued five-year bonds on 25 July this year, but has not yet done so for ten-year bonds (see EUROPE 11836). Its aim is to finalise the bird bailout plan in mid-2018 and free itself of any financial support (see EUROPE 11870).
To help the Commission to put together and execute any future programmes, the Court of Auditors recommends that it improves its procedure for drafting the aid plans, better prioritises measures to correct the greatest imbalances, improves its documentation of economic projections and analyses the necessary support for a country once a programme has come to an end. (Original version in French by Lucas Tripoteau)