Caution required
It is true that there are signs of a recovery in economic activity. Most probably the Greek economy hit rock bottom and from there, the only way was up. Dangers, however, still loom.
Greece became more competitive because of reforms and measures outlined in the bailout memorandums. These are the dictates that the leftist-led coalition government has vowed to scrap when given the chance.
The structural shortcomings that have served as serious obstacles to healthy economic growth on sound foundations have yet to be resolved. This has been made harder by the fact that several officials within the government and ruling SYRZIA have opposed reforms.
Whoever assumes that the growth we are seeing today is on solid ground, and of a permanent nature, is definitely in the wrong.
There is still a heap of work to be done – and more significantly, the reforms dictated in the bailout must not be rolled back.
