European Stability Mechanism

European construction

The EU Still Has No Fiscal Backstop For Banking Crises

Within the EU it is being discussed how to set up a fiscal backstop, a barrier of public money to be used in times of crisis, not just to help out a bank. One option being considered in Brussels is turning The European Stability Mechanism (ESM) into a kind of management tool for a crisis.



Grecia_Elecciones_RecursoTC

Where did all the money go in Greece?

ATHENS | By Yiannis Mouzakis via Macropolis | The total amount of loans the eurozone and the International Monetary Fund supplied to Greece between May 2010 and the most recent disbursements last summer stand at 226.7 billion euros. This is equivalent to almost 125 percent of Greece’s economic activity in 2014. There seems to be a general misconception that feeds a misleading narrative in which the loans were used to keep the Greek state afloat, maintain its basic operations and pay salaries of doctors, teachers and policemen.