The Effects of the Economic Adjustment Programmes for Greece: A Quasi-Experimental Approach

Abstract

Three Economic Adjustment Programmes (EAPs) were implemented in Greece, between 2010 and 2015, without achieving the proposed economic objectives. This article analyses the impact of the EAPs in Greece using the synthetic control method (SCM) and has three main contributions. First, it identifies a long-term negative impact worth 35.3 per cent of the Greek GDP per capita caused by the application of the EAPs. Second, it finds that three-quarters of the estimated negative and unsustainable impact accumulated over the 2010–2012 period. Third, it identifies a regressive effect of the EAPs on income distribution, the Greek population with lower incomes experienced a greater negative effect caused by the adjustment programmes. These results underscore the need to review and correct the conditional financial assistance framework currently in force in the European Union.

Nuevas tecnologías y satisfacción del alumnado: evaluación del módulo Jean Monnet Eufireg en el grado en Economía de la Universidad de Cantabria

“…En lo relativo a la investigación, se ha avanzado a un ritmo adecuado en la elaboración de artículos de investigación que sean publicados posteriormente en revistas de alto impacto internacional. De los 8 artículos de investigación publicados previstos en el Módulo, 4 de ellos ya se encuentran publicados en revistas internacionales de alto impacto (Revuelta, 2021;Alonso y Andrews, 2022;Cagigas et al, 2022;Martin et al, 2022), mientras que el resto se encuentran en fase de elaboración. La difusión de estos artículos ha avanzado a un ritmo muy superior al esperado inicialmente.…”

Economic crises and the reform programs

“…Over the course of 2013 and 2014, the Greece economy improved slightly in comparison to the estimated counterfactual. However, it suffered a new loss in comparison to the counterfactual in 2015, coinciding with the third Economic Adjustment Program (Revuelta López, 2021).…”

Analyzing Greece 2010 Memorandum’s Impact on Macroeconomic and Financial Figures through FCM

“…European Monetary Union (EMU) national governments, and organizations like the ECB as well as the Eurogroup, seized on the role of handling the fiscal and financial crises of "turbulent" nations, making risky measures without advancing the concerns of the countries involved, despite their political objectives (Papastamkos and Kotios 2011). EZ's economic issues had an unequal effect on various EMU members (Revuelta 2021). Marketplaces eventually uncovered EMU's failure to handle the Eurozone's financial condition and react in a suitable way to reestablish its Member States' profitability.…”

“…The whole healthcare sector, including pharmaceutical industries, were also heavily impacted during 2009-2013 (Simou and Koutsogeorgou 2014) as a result of measures imposed by the Government, following MoU's proposals. Through utilizing quasi-experimental analysis, Revuelta (Revuelta 2021) has stated that Greek GDPR has been significantly reduced during the period after the implication of the 3 Economic Adjustment Programmes, due to false perception of the needed measures for Greek economy. Zartaloudis (Zartaloudis 2013), on the other hand, highlighted that MoU's measures fired a series of political, social, and economic shifts that, as a result, did not achieve overall consensus on facing Greece's perpetual deficiencies.…”