IMF agrees to conditional participation in new Greek loan package and demands that the government maintains the suspension of collective bargaining despite rising inequality and decrease in wages.
IMF’s Independent Evaluation Office has found the Fund’s 2010/2011 Troika lending to Greece, Ireland and Portugal fell short in terms of surveillance, design, implementation and decision making, and described controversial decisions as appearing “rubber-stamped”.
IMF has been criticised for undermining negotiations between Greece and other creditors and ignoring the results of a democratic referendum.
Bodo Ellmers of Eurodad argues that, should the IMF not get repaid by Greece, it could finally shock the institution from being a “political puppet” into an effective crisis response instrument.
Troika mulls new loan while Greek government touts economic success story but economic, health and human rights conditions deteriorate. Lagarde admits “miscalculations” occurred in Greek loan, while European parliamentary committee blasts Troika as unaccountable and illegitimate.
As eurozone crisis countries, such as Ireland, complete their loan agreements with the IMF and European lenders, the IMF looks to amend rather than end its role in Europe. Meanwhile, a European parliamentary committee is examining the lending agreements and questioning their efficacy and lack of transparency.
As global economic risks and stagnation in major economies are expected to persist, the IMF's rhetoric is increasingly anti-austerity, reflecting changing priorities in member states. However, states where IMF policy influence is greatest, spending cuts continue.
Controversy erupted in January after the IMF implied lenders to Greece may need to provide yet more debt relief, while the social and economic sustainability of other Troika (the lending triumvirate comprising the Fund, European Central Bank and European Commission) programmes is still in question.
As the IMF initiates negotiations with Tunisia, concerns have been expressed that renewed reforms will not be inclusive or target deep-seated economic and social issues.
The Cyprus government nearly fell in February over IMF and European demands for the privatisation of three public utilities.
Ukraine’s interim government concluded negotiations in late March for an IMF loan, likely to carry wide-ranging conditionality.
Former Portuguese finance minister, dubbed "fourth member of the Troika" appointed to head IMF fiscal affairs department.
CEPR event at the 2013 civil society forum on whether a recovery is under way in Europe; held as a debate between Prakash Loungani of the IMF's research department and Mark Weisbrot, CEPR co-director.
Minutes from Oxfam-hosted civil society seminar at 2013 Annual meetings on European austerity and inequality
The IMF has put itself out of step with Europe on the issue of financial transaction taxes.