GREECE: The claw-back Mechanism

Abstract

In view of the financial crisis of the recent years, Greece was found forced to settle an agreement with its international creditors, which was sealed by a political memorandum of understanding. Despite heavy criticism, mainly from the side of constitutional law experts and opposition politicians of the time, the public interest of rescuing the national economy prevailed, and the agreement of the Greek State with its creditors and international institutions was ratified by the Parliament and became Law.