The European troika is a term used, especially in the media, to refer to the decision group formed by the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF). The usage arose in the context of the "bailouts" of Cyprus, Greece, Ireland and Portugal necessitated by their prospective insolvency caused by the world financial crisis of 2007–2008.

Originally, the European troika was the designation of the triumvirate that represented the European Union in its foreign relations, in particular concerning its common foreign and security policy (CFSP), until the Treaty of Lisbon was ratified in 2009.

Financial crisis bailout troikaEdit

 
2013 protests against troika in Slovenia

The term troika has been widely used in Greece, Cyprus (Greek: τρόικα),[1][2] Ireland,[3] Portugal,[4] and Spain[5] to refer to the consortium of the European Commission, the European Central Bank and the International Monetary Fund that provided a bailout to these member states since 2010 and the financial measures that the institutions have required in return. Slovenia barely avoided intervention by the troika in 2013, thanks to the loan of EUR 1.5 billion acquired at the PIMCO.[6]

Economic adjustment programmesEdit

For Cyprus, Greece (thrice), Ireland and Portugal, the European Commission, the ECB and the IMF agreed Memoranda of Understanding with the relevant governments in a three-year financial aid programme on the condition of far-reaching austerity measures to be imposed on their societies in order to cut government expenditure.[7]

For details in each case, see

Critics of the EC/ECB/IMF TroikaEdit

One of the most prominent critics of the Troika is Yanis Varoufakis, a former Greek finance minister.[8][9] Other critiques of the troika come from German writer Fritz R. Glunk and American academic Noam Chomsky.[10][11]

Common foreign and security policyEdit

This term was used in the European Union when referring to a triumvirate composed of the Foreign Affairs Minister of the Member State holding the (rotating) Presidency of the Council of Ministers, the Secretary-General of the Council of the European Union (who also held the post of High Representative of the Common Foreign and Security Policy), and the European Commissioner for External Relations. The "Troïka" represented the European Union in external relations that fell within the scope of the common foreign and security policy (CFSP).

With the 2009 ratification of the Lisbon Treaty, the post of Secretary-General of the Council was separated from the post of High Representative for the CFSP, which then assumed the responsibilities of the European Commissioner for External Relations. Since only two of the original posts making up the troika still exist, the definition of a triumvirate is no longer met.

See alsoEdit

ReferencesEdit

  1. ^ Hellenic Broadcasting Corporation (6 May 2011). ""Τεστ αντοχής" από την τρόικα ("Stress test" by the troika)" (in Greek). www.news.ert.gr. Archived from the original on 6 May 2011. Retrieved 6 May 2011.
  2. ^ Kathimerini Newspaper Newsroom/Cyprus News Agency (2 April 2014). "Διεκδικητική στάση έναντι της Τρόικας ζητά η ΕΔΕΚ (EDEK Asks for Assertiveness Against the Troika)" (in Greek). www.kathimerini.com.cy. Retrieved 5 April 2014.
  3. ^ RTÉ News (15 April 2011). "RTÉ.ie Extra Video: EU/IMF rescue package - troika briefing". www.rte.ie. Archived from the original on 18 April 2011. Retrieved 6 May 2011.
  4. ^ Público (26 June 2011). "Estudo entregue à troika propõe fecho de 800 km de linha férrea" (in Portuguese). www.publico.pt. Retrieved 28 June 2011.
  5. ^ El País (11 June 2012). "La troika vigilará que se cumplan las reglas pactadas para el rescate" (in Spanish). www.elpais.com. Retrieved 11 June 2012.
  6. ^ "Halo, Slovenija? Plačaj, in trojke ne bo!" [Hello, Slovenia! Pay and There Will Be no Troika]. Delo.si (in Slovenian). 12 December 2016.
  7. ^ O'Carroll, Lisa (2010-11-28). "Government Statement on the announcement of joint EU - IMF Programme for Ireland". The Guardian. Retrieved 2015-01-05.
  8. ^ https://www.yanisvaroufakis.eu/books/adults-in-the-room/
  9. ^ https://www.audible.com/pd/Adults-in-the-Room-Audiobook/B075X31PTR?ds_rl=1262685&ds_rl=1263561&ds_rl=1260658&mkwid=DSAINTTitle_dc&pcrid=239333741509&pmt=b&pkw=&source_code=GO1GBSH07271690CB&cvosrc=ppc%20dynamic%20search.google.634950925&cvo_crid=239333741509&cvo_pid=33581432409
  10. ^ https://www.dtv.de/buch/fritz-r-glunk-schattenmaechte-26175/
  11. ^ http://tech.mit.edu/V120/N46/46chomsky.46n.html