Posted in Finance, Accounting and Economics Terms, Total Reads: 1188
The ‘Troika’ (triumvirate) is a pseudo or vernacular term made popular by European newspapers during the Eurozone crisis. It is basically used to refer to an alliance of the three organizations forming a group of international lenders during the Eurozone crisis:
the European Commission (EC), the executive body of the European Union (EU),
the International Monetary Fund (IMF), the international bank for nations,
and the European Central Bank (ECB) the central bank for the euro and administrator of EU’s the monetary policy.
This tripartite group wielded maximum powers over policy recommendations, austerity measures and rolling out of bailouts to the estranged nations, mostly Greece, Ireland and Cyprus.
The Troika has been in news ever since its formation and its actions have been under the critical scrutiny of economists and critics all over the world, as it is looked up as the authority as well as panacea to solve the European debt crisis. Though, most often, reports of the Troika splitting up or those of the ostensible dysfunctionality of the alliance with have splashed news headlines. The recent measures proposed by the Troika have also created ripples and attracted widespread condemnation from critics all over.