The CEO of the European Stability Mechanism (ESM), Klaus Regling believes Greece can regain the markets’ trust and return on a path of economic growth if it implements the agreed reforms.
Speaking to a convention in Munich on Thursday, Mr. Regling sent a clear message to the embattled country that it could succeed in exiting the deep economic depression, if it showed the required determination to follow through on a series of harsh reforms provided in the bailout deal with its creditors.
Mr. Regling said the ESM had funded 5 countries with 254 billion euros so far, four of which had managed to disentangle themselves from their financial woes after following the prescribed reforms. After lauding Spain and Portugal as examples of success, he went to say Greece was a special case. “Greece is a special case. Nowhere have there been so many extensive problems and weak public administration as in Greece”, he stressed.
Commenting on the state of the EU he objected to those saying it was in a crisis, claiming that was “far behind us”. The CEO of the ESM warned the rise of Euro-skepticism was one of the major concerns in the eyes of the global markets in the wake of national elections in Germany, France and the Netherlands. Mr. Regling admitted that more should have been done to avoid the rise of populism in Europe and the west, adding that income inequality had rose leading to people questioning whether Europe could deal with the great challenges it faces such as the immigration crisis and security.