Troika paranoia could hamper European recovery

By Lewis McLellan
28 Jul 2020

The European Stability Mechanism stands ready to lend eurozone countries up to 2% of their GDP at negative rates — but in spite of the clear cost savings compared to market funding, countries have yet to take up the offer. It is time to rid ESM lending of its stigma.

The politicisation of the ESM has made the loans toxic for some governments, particularly in Italy. The spectre of the Troika that governed Greece's bailout in the last decade hangs over Italian politics and makes accepting loans from the EU or the ESM a politically contentious issue — ...

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