Audit of Greek Debt May Reform EU – Audit Committee

Member of the audit committee on Greek debt Sergi Cutillas says that Greece’s external debt audit may reform the European Union by serving as an example to other countries and making the bloc more democratic.

MOSCOW (Sputnik) — Greece’s external debt audit may reform the European Union by serving as an example to other countries and making the bloc more democratic, member of the audit committee on Greek debt Sergi Cutillas told Sputnik.

The Greek government audit committee on the country’s debt was established in April at the parliament initiative. The independent body comprises 30 members, including 15 Greek and 15 international experts.

The audit “could reform the European Union or make it more democratic,” Cutillas said.

The economist also touched on the much-discussed question of a possible Greek exit from the Eurozone monetary union.

Cutillas argued that the move, if made, should be supported by a series of measures, including Greek bank nationalization, full control of capital, as well as a structural reform of the economy.

The economist added that the Greek government currently has no intention of exiting the Eurozone, but if the move has to be made, it should be preceded by a national referendum or a consultation vote.

Speculations about Greece’s possible exit from the Eurozone began in 2012 amid the country’s ongoing financial crisis. As Greek financial problems persisted and intensified, in 2015, discussions about Greece’s exit from the Eurozone surfaced again.

Sergi Cutillas added that it is easily understandable that Greece would seek Russia’s support amid the European Union’s position in the negotiations over Athens’ debt.

“When one does not feel supported by someone who says they are their partners, it is normal to seek for alliances in other places, to explore, expand the bilateral ties and obviously address Russia and China. This is the first thing that would get into one’s head,” Cutillas said.

Cutillas highlighted that Russia and Greece have strong cultural and religious ties.

The economist stated that Russia would not be able to openly support Greece, as this would trigger further tensions in its relations with the West. However, there are some intermediate steps that Russia could assist Greece in making, Cutillas stressed.

Greece’s gross external debt was estimated at some $456 billion in the last quarter of 2014, according to the Bank of Greece. Over 70 percent of this amount Greece owes to the troika of international creditors comprising the European Union, the European Central Bank (ECB) and the International Monetary Fund (IMF).

In February, Greek new left-wing government promised to pursue economic reforms after Athens and Eurozone finance ministers agreed to extend the bailout deal until July 1, 2015.