EU Should Pull Financial Support If Targets Missed, OECD Says

The European Union should be ready to withdraw financial support from countries such as Greece if the conditions attached to bailouts aren’t met and such terms should be part of any permanent aid facility, the OECD said.

“A credible mechanism for fiscal crisis management is required,” the Organization for Economic Cooperation and Development said today in one of its regular regional Economic Surveys. “This should involve a permanent liquidity-support mechanism subject to strong conditionality. If conditionality is not fulfilled, financing support should be withdrawn.”