European Stability Mechanism successfully boosts Greek economy

european stability mechanism
© iStock/MarioGuti

Today, 20 August, marks one year since the completion of the European Stability Mechanism programme of economic support in Greece.

The stability support programme aimed to address the long term structural issues which contributed to the country’s financial crisis and alleviate the crisis’s socioeconomic consequences. €61.9bn worth of loans were distributed to Greece through the European Support Mechanism over three years, in return for which the Greek government implemented comprehensive, wide ranging reforms in order to boost economic recovery and shore up protections against future crashes.

Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said: “Greece has come a long way since completing its stability support programme a year ago. Economic data is showing positive signs, indicating efforts will continue to bear fruit for a society that has seen a lot of hardship. However, challenges remain and willingness to engage, actively, in the process of reform completion – and to work closely with European partners – will be essential to supporting stability, growth, job creation, and a better social welfare system in the months and years to come. It is important that all public and private actors work together to secure and sustain a better future for the Greek people. The European Commission will remain by Greece’s side and support its central role as a member of the European Union and euro area.”

Since the implementation of the European Support Mechanism in Greece, the country’s rate of economic recovery has largely improved. Unemployment in Greece has fallen below 18% for the first time since 2011, after peaking at 27.9% in July 2013.

Valdis Dombrovskis, Vice President for the Euro and Social Dialogue and Commissioner for Financial Stability, Financial Services and Capital Markets Union, said: “One year ago Greece completed its European Support Mechanism stability support programme to restore financial stability and promote growth and job creation. Greece’s economy has benefited from reforms and the boost in confidence. The growth is steady, unemployment is going down and public finances have improved. It is important to build on these achievements by continuing on the path of responsible fiscal policies and structural reforms, including those aimed at strengthening the Greek financial sector.”

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