Rehn defends troika’s policies in Greece

Speaking to the Economic Affairs Committee of the European Parliament, within the hearing of the assessment report of the troika, Commissioner Olli Rehn defended its policy and decisions.

The future of the troika is determined by the wishes of the Member-States, even if his view of or that of the European Commission is different, he added.

The Finnish politician also said that he has the supervision of the troika, and that the action of officials are under his own guidance, supervision and ultimate approval, while the positions and demands of the auditors are the same as the European Commission’s.

He also spoke about what the German Foreign Minister Frank - Walter Steinmeier said, who answering a question of "Vima" newspaper said there is no reason to abolish the troika and the presence of the IMF in it, and that it does not lack the necessary legitimacy as the final decisions are taken in the Eurogroup.

Trying to keep the balance Rehn noted the positive developments in the course of the Member-States that received the help of the troika, like Ireland, which has come out in the markets, and declined to attribute responsibility for the mistakes in the adjustment programs.

Referring to Greece, Rehn said the adjustment program failed in part because of the political turmoil in the spring of 2010 until the summer of 2012, and that the time pressure to make difficult and painful decisions was such that there were not many options.

Regarding the criticism that there should have been a restructuring of the Greek debt in 2010, he replied that the risk of dissemination of the crisis was very large and there was no consensus.

"Troika is an official institution and provided for by the intergovernmental establishment treaty of the ESM. If there had not been the immediate solution that was given then, Greece would have gone into default on payments and this would include the welfare state, benefits and payroll of the Greeks."