for a shortfall of capital where investments are need, in order to stimulate the ability of the economy to
grow and for public investment to lead to the creation of decent jobs; indeed, public investments in
infrastructure and in education, as well as in institutions-building, have a key role to play in attracting
private investment. On the other hand however, high levels of debt can lead creditors to impose
conditions, linked in particular to macroeconomic policies and fiscal consolidation, that could
negatively affect the ability of the borrowing country to fulfill economic, social and cultural rights.
In the recent past, the case of Greece illustrates this best.171 After it was revealed, in October 2009,
that the public debt of the country was much higher than had been reported, Greece faced speculation
on the financial markets, making its debt impossible to finance at acceptable conditions. It therefore
called for financial support, and three rescue packages were successively granted, in 2010, 2012 and
2015.172 However, following the implementation of fiscal consolidation programmes adopted by the
country at the request of its creditors (the other Euro Area Member States represented by the European
Commission, the International Monetary Fund, and the European Central Bank), various human rights
bodies expressed their concern on the impacts of these programmes on social rights. The European
Committee of Social Rights considered that amendments to labour legislation, introduced in the name
of "flexibility", violated various provisions of the European Social Charter,173 and it arrived at the
same conclusion concerning reductions to the levels of pensions.174 United Nations human rights
treaty bodies expressed similar concerns at the impacts of the austerity measures introduced by Greece
at the request of its creditors.175 When it reviewed the situation of the country in October 2015, the
Committee on Economic, Social and Cultural Rights expressed its concern that "despite the measures
taken by the State party to mitigate the economic and social impact of the austerity measures adopted
in the framework of the memorandums of understanding in 2010, 2012 and 2015, the financial and
economic crisis has had a severe impact on the enjoyment of economic, social and cultural rights,
171
For an excellent summary, see L Papadopoulou, 'Can Constitutional Rules, even if “Golden”, Tame Greek Public Debt?',
in Maurice Adams, Federico Fabbrini and Pierre Larouche (eds), The Constitutionalization of European Budget Constraints
(Oxford, Hart, 2014), pp 223–247. See also See European Parliament Report 2009–14 on the inquiry on the role and
operations of the Troika (ECB, Commission and IMF) with regard to the euro area programme countries (2013/2277 (INI)),
A7-0149/2014, 28.2.2014; Report of the Independent Expert on the effects of foreign debt and other related international
financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights,
Mission to Greece (22–26 April 2013), UN doc A/HRC/50/15/Add 1 (27 March 2014).
172
Greece called for financial assistance on 23 April 2010. In response, the representatives of the Euro Area Member States
other than Greece decided on 2 May 2010 to provide stability support to Greece through a Loan Facility Agreement: in
effect, an intergovernmental framework that allowed the pooling of bilateral loans in the form of an international contract.
The Euro Area Member States provided Greece with a total of 80 billion euros in loans on the understanding that the
International Monetary Fund (IMF), to which Greece had also turned for assistance, would provide another 30 billion euros
(Loan Facility Agreement (2010), preambular § 3). The disbursements, however, were made conditional on the adoption of
fiscal consolidation measures by Greece, the content of which was negotiated by the European Commission on behalf of the
creditors. The 'Economic Adjustment Programme for Greece' included so-called ‘austerity’ measures purportedly to restore
Greece’s fiscal balance (30 billion euros worth of spending cuts were decided for the period 2010–2014) ; the privatisation of
State assets, in the amount of 50 billion euros ; and ‘structural measures’, involving in particular the ‘flexibilisation’ of the
labour market, as a means to restore the competitiveness of the Greek economy. In June 2011, after this first set of measures
appeared insufficient, the euro-zone Member States granted a second loan for an amount of 130 billion euros for the years
2012–2014. This second bailout was effectuated through the European Financial Stabilisation Mechanism (EFSM) and the
European Financial Stability Facility (EFSF). It was officially launched in March 2012. Finally, a third rescue package was
agreed in July 2015, for an amount of 68 billion euros (see Council Implementing Decision (EU) No. 2015/1411 of 19
August 2015 approving the macroeconomic adjustment programme of Greece, OJ L 219, 20.8.2015, p. 12).
173
ECSR, Decision on the merits, 23 May 2012, Complaint No 65/2011, General Federation of Employees of the National
Electric Power Corporation (GENOP-DEI) and Confederation of Greek Civil Servants' Trade Unions (ADEDY) v Greece;
ECSR, Decision on the merits, 23 May 2012, Complaint No 66/2011, General Federation of Employees of the National
Electric Power Corporation (GENOP-DEI) and Confederation of Greek Civil Servants' Trade Unions (ADEDY) v Greece.
174
ECSR, Federation of Employed Pensioners of Greece (IKA-ETAM) v Greece, Complaint No 76/2012; Panhellenic
Federation of Public Service Pensioners v Greece, Complaint No 77/2012; Pensioners' Union of the Athens–Piraeus Electric
Railways (ISAP) v Greece, Complaint No 78/2012; Panhellenic Federation of Pensioners of the Public Electricity
Corporation (PAS-DEI) v Greece, Complaint No 79/2012; Pensioners' Union of the Agricultural Bank of Greece (ATE) v
Greece, Complaint No 80/2012.
175
See, eg, Committee on the Elimination of Discrimination against Women, Concluding Observations on the seventh
periodic report of Greece, UN doc CEDAW/C/GRC/CO/7 (1 March 2013); Committee on the Rights of the Child,
Concluding Observations on the combined second and third periodic reports of Greece, UN doc CRC/C/GRC/CO/2-3 (13
August 2012).
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