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Tuesday, 10 February 2015

Greece: OECD rather than IMF or Troika - Why?

I assume that the OECD is preferred, in part, because the organisation has employed many Greek economists and policy analysts and other personnel, thus ensuring better dialogue and a more sympathetic ear? Collegial advice, no more conditionality and commitments to the most unpopular structural reforms?

Who does what in OECD

Representatives of member countries sit on the committees for strategy and implementation.

"Mr Skrekas emphasized the quality of the OECD’s advice and the effective cooperation between the Organisation’s experts and Greece’s public administration to support reform. Minister Skrekas said the Greek Government was committed to continue reforms that will assist entrepreneurship and cut red tape. He added that Greece’s commitment to reform is shown, for example, by the elimination, earlier this week, of investment licenses for 104 business sectors.‎ Mr Gurría said: “Greece should be commended for its tremendous reform effort over the last few years. Reforms to strengthen competition, reduce administrative burdens and improve the transparency of public procurement are already having positive results on Greece’s economic performance, its international competitiveness and on restoring growth” 28/11/2014.

"Tsipras again insisted that there would be no extension. By refusing a new package, the Greek government is trying to get free from the conditionality imposed by the Troika — in other words, the commitment to the program of austerity measures and structural reforms that the creditors have imposed on Greece".

Kathimerini on the US View - "η Ελλάδα θα πρέπει να συνεργασθεί με τους Ευρωπαίους εταίρους της και το ΔΝΤ «για τις διαρθρωτικές μεταρρυθμίσεις στην οικονομία της και τη συμμετοχή της στην Ευρωζώνη» - Greece should work with its European partners and the IMF".

Svenska Dagbladet, Tomas Lundin

"Showdown. The moment of truth is approaching when the newly elected Alexis Tsipras meets the rest of EU leaders for the first time, at Thursday's summit. The risk is great... between his election promises and deep scepticism among lenders... but no one knows how the poker game will end...As a mathematician and economist specializing in game theory Yanis Varoufakis should have all the prerequisites to judge when it's time to give in and compromise. But who knows if Greece does not prefer a gamble. It may go well - but it can also lead to a crisis of confidence and an unregulated state bankruptcy that everyone wants to avoid" (Google automatic translation, slightly edited).

Update: Greece and the OECD (Reuters)

(Reuters) - "Greece and the OECD agreed on Wednesday to work together on reforms to the Greek economy, but Athens insisted it would not let outsiders decide what policies it should adopt. Speaking ahead of a meeting of euro zone finance ministers in Brussels, where Greece will present a demand for an end to its international bailout and a transition to a new debt restructuring deal, Prime Minister Alexis Tsipras said Greece was committed to implementing reforms - but not those imposed by others. The Organisation for Economic Co-operation and Development has in the past provided Greece with a "tool kit" that essentially designs the reforms that have been required of Athens by international lenders".
Kathimerini Update - on Co-operation and New Relationship with OECD

Update on Twitter

Yannis Koutsomitis ‏@YanniKouts 

#Germany FinMin Spokesman Jäger Says OECD Can Not Take Over Role Of Troika For #Greece

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