Sunday December 21, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Reforms will see GDP add 5.4 pct by 2018, says Brussels

From the reforms in the products market, which will lead to a reduction in profit margins in the final price of commodities, GDP will gain 3.4 percent within five years and 39.3 percent in the long term.

By Sotiris Nikas

The market reforms Greece is expected to promote will lead to the creation of 190,000 jobs over the next five years and see the country’s gross domestic product grow by 5.4 percent, a European Commission report estimated on Wednesday. The reforms which will help to speed Greece’s recovery are those concerning the products market and improving competitiveness.

The Commission’s study, which focuses on the impact of reforms on Greece, Spain, Italy and Portugal, notes that in Greece’s case the above structural changes will not suffice for the local economy to climb to the level of its top European counterparts.

“In Greece and Portugal the total impact of reforms cannot fully bridge the income gap, illustrating that there are other structural rigidities that have not been calculated,” reads the report. The benchmark set is the average incomes in the European Union’s three wealthiest countries (Luxembourg, Austria and the Netherlands), and with the proposed reforms Greece will close the gap by 78 percent, against Portugal’s 67 percent and Italy’s 87 percent.

The products market is the sector where the Greek government needs to focus its efforts, as the changes that can be implemented will bring additional benefits to the economy and employment levels. From the reforms, which will lead to a reduction in profit margins in the final price of commodities, GDP will gain 3.4 percent within five years and 39.3 percent in the long term (of over 10 years). In terms of employment, there will be a 2.2 percent rise over a five-year period and 11.5 percent in the long term. The Commission admits that in the first couple of years of reform application there will be a marginal decline in GDP and employment, but once the market has adjusted to the new conditions (i.e. after five years) the benefits will be multiple.

From the lifting of barriers to starting a business, the Commission expects GDP to grow 0.8 percent in the next five years, while employment will add 0.1 percent.

On the labor market, Brussels argues that the tax on labor must go down while the tax on consumption should increase. It estimates that this would boost GDP by 1.4 percent over five years and 4.5 percent in the long term, with the respective growth in employment amounting to 2.7 percent and 4.7 percent.

Finally, if subsidies to research and development are increased, GDP will decline in the next five years by 0.4 percent but add 1.4 percent in the long term, while the rise in employment subsidies will see GDP grow by 0.2 percent in five years and lose 0.2 percent in the long run.

ekathimerini.com , Wednesday March 12, 2014 (21:46)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athens’s old quarter. The bill...
Corfu to host country’s first hydroplane strip
Merchant Marine Minister Miltiades Varvitsiotis and Deputy Infrastructure and Transport Minister Michalis Papadopoulos have signed a decision paving the way for the country’s first hydroplan...
Inside News
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
Inside Sports
COMMENTARY
The big picture
In his second term, US President Barack Obama is taking steps to enshrine his legacy and solidify America’s standing in the 21st century. His recent decision to normalize relations between t...
EDITORIAL
Get your facts straight
The danger that political discourse in Greece will sink to the basest levels of vulgarity is already more than apparent from the allegations we have heard bandied about over recent days. The...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Environment Ministry to reconsider controversial bill
2. Corfu to host country’s first hydroplane strip
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Police gets new communications system
5. Most Greeks say they recycle daily
6. Probe into revenues of 2 mln euros in Halkidiki municipality
more news
Today
This Week
1. Get your facts straight
2. The big picture
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Environment Ministry to reconsider controversial bill
5. Changes on E9 property declarations possible until end-year
6. Police gets new communications system
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. A friendly yet firm message from Pierre Moscovici
3. Europe's drama in Greece needs final act to avoid tragedy
4. High stakes
5. On the edge but not gutless
6. Gap between SYRIZA and New Democracy closing, says poll
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.