Greece is on the right track, provided it remains willing to continue reforms, the Managing Director of the European Stability Mechanism (ESM) Klaus Regling said, while addressing a representation of the State of North Rhine-Westphalia to the EU on the topic “What comes after the Euro Summit? The role of the ESM in a deepened monetary union.”
“Since 2011, the bailout funds have disbursed 295 billion euros to Ireland, Portugal, Greece, Spain and Cyprus. Today, Ireland, Portugal, Spain and Cyprus are experiencing high growth and rapidly falling unemployment rates.
And they can easily refinance themselves on the market again,” Regling noted, while Greece was also “on the right track”.
Regling noted that the ESM lends at very low interests rates, which create considerable budgetary savings for the countries involved: “this way, for example, Greece saved around 12 billion euros in 2017. That is almost 7 pct of Greek economic output. And these savings repeat every year.”
“Much has happened during the last 10 years. And the monetary union is now more stable and better prepared for the next crisis than a decade ago. But the reforms continue, rightly so,” Regling said.