18 December 2013

ECON Committee: Bailout Troika review - Preliminary views tabled

The draft report from the EP's review of crisis bailout work by the Troika was tabled by Rapporteurs Karas and Ngoc. It will form the basis of political work set to kick off in January, at hearings with key bailout players and delegations to Cyprus, Greece, Ireland and Portugal.

Rapporteurs Othmar Karas (EPP, AT) and Liem Hoang Ngoc (S&D, FR) said: "We have thrown our work into the open. This is the first step. It is now through the hearings and our visits to the affected countries that we, and our colleague MEPs, will delve deeper to gather evidence to inform any recommendation for change. We shall also receive answers to a detailed questionnaire that we put to key policy-makers. We welcome the European Commission's willingness to contribute, and invite others, in particular the ECB and Eurogroup, to follow suit in the same spirit of transparency and accountability."

The draft text takes stock of the economic situation in the programme countries at the start of the crisis, gives an overview of the Troika’s institutional setup and outlines the economic underpinnings on which it built its goals. 

The draft also gives various pointers as to where improvements are most needed. These include reforming decision-making structures to increase coherence, transparency and accountability and considering a revision of the  the fiscal multipliers on which assumptions are based.

The text also points out that improvements are needed at national level too, especially with regard to “ownership” of the reform process, which, if absent, results in less effective implementation and less positive results.

Press release

Draft report, 17.12.13

Questionnaire to Troika and Programme States, 21.11.13

ECON-webpage with responses

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EPP/Karas - Troika is a stop-gap

"The Troika is a stop-gap. It is based on the collaboration of governments, but not in Union law. In the future, transparency, parliamentarian scrutiny and democratic legitimacy must be guaranteed", said European Parliament Vice-President, Othmar Karas, who leads the evaluation of the work of the Troika. Karas tabled the Parliament's draft Report jointly with a Socialist MEP. "We are fully on schedule. This is the basis for discussion on which we continue to work", said Karas.

Further findings of the evaluation will be incorporated in the Report in January and February. "We need to initiate the next steps as soon as possible to bring the Troika on level with Union Law. This does not work without a change of European Treaties. It is for this reason that I call for a European Convention as quickly as possible", Karas said.

From the 6th to the 10th of January, a delegation of MEPs will go to Portugal, Greece and Cyprus on a fact-finding mission. On the 16th and 17th of January, such a mission will take place in Ireland. In mid-January, several hearings are planned on the work of the Troika with the European Commissioner for Economic and Monetary Affairs, the former President of the European Central Bank Jean-Claude Trichet, and with the Director of the European Stability Mechanism, Klaus Regling.

The European Parliament already sent detailed questionnaires in November to the Troika and the programme countries. The answers to the questionnaire will arrive soon and will be incorporated into the draft Report.

Press release

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