The term Troika, which comes from the Russian meaning ‘group of three’, was increasingly used during the eurozone crisis to describe the European Commission, International Monetary Fund and European Central Bank, who formed a group of international lenders that laid down stringent austerity measures when they provided bailouts, or promises of bailouts for indebted peripheral European states – such as Ireland, Portugal and Greece – in the financial crisis.
troika in the news
In October 2013 it was reported that the Troika had challenged Greece over a looming fiscal gap in its 2014 budget that could undermine its chances of emerging from a six-year recession.The Troika wanted Greece to adopt further austerity measures after identifying the €2bn gap.
Earlier in October 2013, the Troika rejected Portugal’s plea to relax deficit targets.
In April 2013, Ireland lifted a legal ban on house repossessions, a move that was sought by the Troika.
However, also in April 2013, an FT columnist warned that the IMF had lost its role as a neutral player after being dragged into the eurozone crisis as a junior partner.