Prospects for Greece after the third adjustment programme

During the summer break yet another adjustment programme for Greece was agreed, but will it succeed where previous programmes have failed? Discussants Nikolaos Christodoulakis, Athens University of Economics and Business (AUEB), Declan Costello and Gabriele Giudice, ECFIN, and Rolf Strauch, ESM, addressed the audience at a CEPS conference entitled “Can it work? Future prospects for Greece after the third adjustment programme” and expressed that very hope for this adjustment programme. The speakers made the point that many reforms have already been implemented during past programmes, but key challenges remain. Apart from a sense of ownership of the reforms, what is needed for them to succeed is political stability. Passing structural reform in the Parliament has little effect when implementation is stalled on the ground. Ultimately, fruitful reforms would increase market confidence and attract much-needed investment, but recent stonewalling tactics in Greece have once more raised doubts about whether the reforms will materialise as initially hoped.