The Troika (European Commission, ECB and IMF) has financially supported a number of European countries, including Ireland, Spain and Greece. The offered loans were used to strengthen the financial position of the countries and prevent them to go (technical) bankrupt. These were not free loans. In return for receiving this financial assistance, the countries with the deficits had to comply with the terms and reform their economy.
Based on the findings of the Troika it periodically determined if the countries make sufficient progress and whether there is need for continuation of financial support.
In the meantime (June 2014) the economic environment is significantly improved: Spain and Ireland are standing on their own two feet again. Greece at first has made a modest progress. In autumn 2014 the Troika announced that Greece needed an additional (third) loan. Due to political instability new elections were needed. This was won by the left wing party Syriza. In order to keep their promise to the voters, a long and fruitless period of negotiations with the Troika, broke the fragile economic recovery.
Assignments:
A1. Sketch briefly the starting situation of the crisis.
A2. Sketch briefly the starting situation for the three countries, which led to the inevitable need for financial support.
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