On 7 January the Employment and Social Affairs Committee (EMPL) of the European Parliament started a hearing regarding the consequences of policies of the Troika on the Member States affected by the bailout (Greece, Ireland, Portugal and Cyprus).
This Committee has drafted a report that voices its concerns about the negative social implications on the populations of these countries, especially the most vulnerable. Social benefits, wages and health expenditure among others have been drastically reduced since the crisis began back in 2008. In addition to this, some other macroeconomic indicators, such as unemployment rates and public debt, still seem to pose problems whose solution is far from being resolved.
The EU Parliament, the only European Institution that is directly elected by us Europeans, has been kept out from the negotiation process between the Troika (consisting of the IMF, the European Commission and the European Central Bank) and the bailed out countries.One of the claims made by the EMPL is for the process to be more transparent and democratic.
Some of the questions raised by the Members of the European Parliament (MEPs) intend to shed some light on the real bargaining power that the affected Member States had when negotiating with the Troika and whether or not it was known the extension of the implications of policy change on the Welfare State of these countries.
However, in his answer to the Committee, Mr. Olli Rehn, who is the member of Commission responsible for the Economic and Monetary Affairs, states that despite reforms having been painful, they were less evil than the collapse of the system. He also confirms the long repeated sentence of “solidarity for stability” that intends to legitimate the cuts in the Social Expending. Again Greece is given as an example on how more reforms in the health sector are needed in order to obtain a “more cost-effective health care”.
EPHA supports the EU Parliament and its Committee in his claim to deepen their knowledge on these three years since Greece was first bailed out. EPHA will work with members of the Employment and social affairs and Economic Affairs Committees to include a health dimension in both reports. The consequences of decisions taken closed doors still affect the life of millions of Europeans and we claim that it is good for the future of Europe and for democracy that we seek to understand what has happened and how we can prevent it from happening again.
To know more:
1) Solidar newsletter “European Parliament drafts a report about the work of the troika in Greece, Portugal, Ireland and Cyprus”(Accessed Online on the 20th January 2014)
2) Draft Report (2013/2277(INI) (Accessed Online on the 20th January 2014):
3) Questionnaire supporting the own initiative report evaluating the structure, the role and operations of the 'troika' (Commission, ECB and the IMF) actions in euro area programme countries.
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