Mr. P. Roumeliotis, Emeritus Professor of Economics, Panteion University of Athens, Vice-Chairman of Piraeus Bank, former MEP and economist at IMF, conducted a critical economic analysis of the troika, its work, and effectiveness in terms of results achieved in the programme countries is not the easiest of tasks. He presented it with Next Left Economic Circle chair Liem Hoang Ngoc, as well as Podimata MEP and Cercas MEP.
In his view, a lot more needed to be done. In this context, he stressed the need for the mutualisation of the Eurozone’s debt could protect the weakest members from the destructive upsurges of fear and panic that can arise in the financial markets operating in a less than optimal monetary union. Alternatively, the operation of the European Stability Mechanism could be complemented by the creation of a European Monetary Fund; the latter would build on the financial power of the ESM, while operating on a better understanding of conditionality and creating incentives for fiscal discipline without compromising solidarity.
He also underlined the need to strengthen institutional mechanisms for the adoption of anti-cyclical policies, so that future crises are prevented or at least their incidence is minimised. He stressed the need to institutionalise the non-conventional means that the ECB has had in its policy implementation “toolbox” and used in response to the financial and sovereign debt crisis in order to further restore the monetary policy transmission process and support its objectives. And last but not least, he called on strengthening the role of the European Parliament, so that the accountability of the institutions and agencies that will be called upon to manage future crises will be institutionalized.