In effect, that means that a nation could negotiate a program with the European Union under "strict conditionality," making it possible for the bailout fund to buy bonds issued by that government.
The substantive ethical debate about the desirability of "conditionality"—making resources conditional on behaviour, such as work-related activity is one we shall return to below (see section 3.2).
The IFIs are notorious for their "conditionalities" that make borrowers sign up to austerity and structural adjustment programmes that have had questionable outcomes on growth and equality in the region.
But British and Spanish officials, seeking a compromise, spoke of "positive conditionality" -- making larger amounts of aid available to non- Union countries that cooperated.
Thus, countries with relatively generous benefit systems have been able to implement relatively successful activation regimes by enforcing relatively strict benefit conditionality and making effective use of ALMPs (Switzerland, Norway, Finland).
It is also an interesting case study of a country which has managed to offset the adverse work incentive effects of a relatively generous benefit system by imposing strict benefit conditionality and making use of referrals to a relatively effective set of ALMPs.
IMF conditionalities have also been widely debated.
The use of conditionality, discussed in the previous section, is perhaps a particularly important area in which to make sure that policy-making procedures have these qualities of publicity, reasonableness, and contestability.
Again, a mixture of conditionality and in-work support is needed to make reform effective.
Moreover, the conditionality and close monitoring typically associated with the multilateral institutions make them less attractive sources of financing.
