Tuesday Jul 22, 2014 Search
Weather | Athens
29o C
22o 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)  
Consumer confidence in Greece improves in Q2
Greek sovereign debt at 174.1 percent of GDP in first quarter
Portugal, Greece have money if banks need it, Regling says
Shares in Greek renewable energy firm drop in trade debut
Old Attica train tracks to be transformed into bicycle lane network
The Attica Regional Authority in cooperation with experts from the National Technical University of Athens (NTUA) are drawing plans to transform abandoned railway tracks into bicycle lanes t...
Attica hospital workers to hold five-hour walkout on Wednesday
Workers at public hospitals in the Attica region will walk off the job from 10 a.m. to 3 p.m. on Wednesday and stage a protest rally at 11 a.m. outside the Health Ministry They are protestin...
Inside News
TRACK & FIELD
Pole vault record on same day as three doping cases
Greek track and field had a mixed weekend, as on the same day as Katerina Stefanidi matched the national record in pole vault as well as the leading result in Europe so far this season, thre...
SOCCER
Standard Liege on Panathinaikos’s way
The draw for the third qualifying round of the Champions League on Friday has put Belgian league runner-up Standard Liege on Panathinaikos’s way to the competition’s play-offs, meaning the G...
Inside Sports
COMMENTARY
Unequal after death
The dead are dead and the slain are slain, whether they are Malaysian, Dutch, Palestinian or Israeli, whether they are the innocent victims of a civilian plane that is shot down (we still do...
EDITORIAL
Chinese investment
The relationship between Greece and China has become one of major strategic importance. Beijing threw its support behind Athens during a period when the country was going through particularl...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Old Attica train tracks to be transformed into bicycle lane network
2. Attica hospital workers to hold five-hour walkout on Wednesday
3. PM congratulates police over Maziotis arrest
4. Consumer confidence in Greece improves in Q2
5. Greek sovereign debt at 174.1 percent of GDP in first quarter
6. Ministry approves 1.3 million euros for animal shelters
more news
Today
This Week
1. Unequal after death
2. Chinese investment
3. Greeks getting better at recycling, though still Europe's laggards
4. Piraeus prosecutor investigating use of funds for building renovation
5. Shares in Greek renewable energy firm drop in trade debut
6. Quake measuring 4.3 Richter recorded south of Crete
Today
This Week
1. China and Greece agree to further cooperation in transportation, infrastructure
2. Ex-Credit Suisse banker taps lesson for Greek rebound
3. The cost of excellence
4. Pay-TV booms as cash-strapped Greeks shun depressing news shows
5. Greece seen in third bailout as bonds not enough, economists say
6. Summer storms cause problems in Thessaloniki, spread across the country
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.