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IMF watchdog hits out at role in euro crisis – key findings

Page created: Friday, 29 July 2016 14:52 GMT

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Assessment  IMF  Troika

In a highly critical account of the IMF’s role in bailing out three of the eurozone’s indebted member states from 2010 – Greece, Ireland and Portugal – an internal watchdog finds the Fund became “trapped in ‘European exceptionalism’”.

 

  • Participation alongside the European Commission and European Central Bank, despite proving efficient for debtors, meant the Fund lost “characteristic agility as a crisis manager”
  • The Troika arrangement potentially “subjected the IMF staff’s technical judgments to political pressure from an early stage” as political considerations in member states meant “occasionally [staff] felt pressured to accept a less-than ideal outcome”