Friday October 31, 2014 Search
Weather | Athens
18o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
BoG: Growth will become sustainable through reforms

The central bank head stated in his report that the country’s growth model should shift from locally consumed commodities toward the production of internationally consumable products, such as olives and olive oil, and services.

By Sotiris Nikas

Last year will probably be the last in the country’s long recession, but the reforms must continue and political and social forces will need to reach a consensus if the country is to return to a path of growth, the annual report by the governor of the Bank of Greece warned on Thursday.

The first condition that Giorgos Provopoulos sets for a return to economic expansion is the continuation of the streamlining program with resolve and coherence. “The hitherto favorable results do not allow for any complacency,” the BoG chief stated in his report, noting that “on the contrary, the fiscal adjustment must continue and be maintained on a permanent basis for the primary surplus to grow, debt sustainability to be safeguarded and for the climate of confidence to be consolidated.”

The BoG governor’s second condition is the banishing of risks or uncertainties that could emerge from the deterioration of the social and political climate “due to the customary clashes and polarization ahead of the elections for the European Parliament and local authorities.”

Provopoulos sets the transformation “of the ongoing stabilization to dynamic growth on solid ground” as the main national objective. In this context he stresses the significance of reforms, where “reluctance and lack of resolve” have been noted to date.

He also warns that the anticipated growth will be small and fragile and the country’s prospects undermined unless a program of extensive reforms is implemented “with vigor and boldness.” The program’s targets should be the following:

* A broad reform of the state mechanism.

* The institutional modernization of sectors such as education, health and justice.

* The creation of competitive markets and opening up so-called closed-shop professions.

* The formation of a tax system that will be stable and favorable to entrepreneurship, investment and employment, while being strict on tax evasion. The report stresses that major tax evasion has resulted in a greater burden on taxpayers who adhere to their obligations, and calls for the reduction of that burden.

For the policy to be effective, “it will take the composition of views and ideas, which would be difficult in a climate of confrontation that will increase differences and avert convergence.”

Crucially, Provopoulos also calls for a shift in the economic growth model, noting that the old growth pattern is being rapidly devalued while the emergence of a new one has been delayed. The new model should be based on the switch from the production of output that cannot be sold abroad to the production of internationally consumable products and services, as well as a shift from consuming toward saving and investing.

ekathimerini.com , Thursday February 27, 2014 (23:05)  
Eurozone inflation up, unemployment steady, Eurostat reports
Greek retail sales rise for third month in a row
Germany’s 10-year bonds decline before euro-area inflation data
Cyprus’s Georgiades bets on economy for Irish-style bailout exit
Cyprus court ruling opens way for bailout funds
The Cypriot supreme court ruled as unconstitutional Friday four bills on bank foreclosures whose passage by parliament prompted international lenders to halt payments on the country’s 10-bil...
Greek PM appoints new defense, development ministers [Update]
Greek Prime Minister Antonis Samaras named his development minister to the defence ministry portfolio on Friday to replace Dimitris Avramopoulos, who is set to become an EU Commissioner. Nik...
Inside News
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus court ruling opens way for bailout funds
2. Greek PM appoints new defense, development ministers [Update]
3. PSI victims protest in Athens, Thessaloniki
4. Archaeologists find underground vault in Amphipolis tomb
5. Eurozone inflation up, unemployment steady, Eurostat reports
6. Nikos Dendias appointed defense minister
more news
Today
This Week
1. Man shot dead, woman injured in Vathis square attack
2. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
3. Germany’s 10-year bonds decline before euro-area inflation data
4. Archaeologists find underground vault in Amphipolis tomb
5. Greek retail sales rise for third month in a row
6. New defense minister to be appointed without reshuffle
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.