Europe Considering Dismantling Troika Who Oversaw Greek Bailout

Brussels is considering scrapping the troika that supervises Greek reforms to allow Athens to pursue its own plan to bolster the economy in return for a drip-feed of debt relief, European officials say.

The discussion, still in its early stages, will gather pace as Greece and its euro zone backers chart a new course for the country with its second European bailout program due to end later in 2014.

Dismantling the troika, a trio made up of the European Commission, European Central Bank and International Monetary Fund and likened by some in Greece to the German Nazi occupation, would likely be central to the new plan for Athens.

After Ireland and Portugal exited bailouts earlier this year, the EU/IMF inspectorate is now only active with Greece and Cyprus and many experts have expected Athens to require further help.

Switching to a ‘reform-for-debt-relief’ scheme with lighter supervision could sooth public frustration and help bolster the coalition government at the expense of far-left opponent Syriza, which has promised to tear up Greece’s international bailout agreement and is leading in the polls.

National elections could come as early as next year and a Syriza-led government would present a headache for the euro zone.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza