The euro ticked up on Tuesday despite a growing controversy over the region's bailout Troika which revealed that the organization was fracturing. The common currency traded at $1.326 at 7:35 GMT on Tuesday morning, a sizable jump considering the lack of positivity coming out of the bloc.
In March of 2010, when Greek public debt threatened to tear down the entire region, the European Commission, International Monetary Fund and the European Central Bank quickly united to create the Troika and help solve the crisis by enacting a bailout.
The Troika designed and is currently enforcing aid plans in several eurozone countries; however a report from the IMF last week revealed to the public that the three organizations that make up the Troika did not wholly agree on all aspects of its bailouts. According to Reuters, the report showed that the three disagreed when it came to Greek debt restructuring, whether or not to force investors to take losses and if Ireland should have made bondholders share the cost of the financial rescue.
Most importantly though, the Troika is still unable to agree on whether or not eurozone governments should forgive some of Greece's loans in order to make the country's debt more sustainable. The IMF suggested that it lowered its standards when it agreed on a faulty aid package for Greece and is now claiming Greek debt should have been written off sooner. The ECB and European Commission both disagree, and claim the IMF report was misleading.
In any case, the report publicly aired the Troika's shortcomings and gave the public reason to doubt the organization's choices. Not only does the IMF report show the three sides disagree, but it also indicates that Greek growth forecasts and debt estimates were altered because of eurozone policy makers who were able to influence the process.
Some are blaming the Troika's shortcomings on a lack of leadership, saying that without anyone in charge, all three organizations became junior partners. Moving forward, most don't expect to see the Troika disassemble, but there could be some changes to the organization's structure.
BY Laura Brodbeck