Prices drop, at last
Finally some good news regarding people’s real finances, instead of the usual assortment of cold macroeconomic figures.
Recent data indicating a decline in prices are, no doubt, a very welcome development. After all, at some point, prices in Greece had to follow the trend of salaries and rents, which have dropped considerably since the debt crisis hit the country. However, a further slide in consumer prices is necessary so as to reflect the new economic reality.
The only way to achieve this is by strengthening competition in the Greek market and not by having the state introduce outmoded market regulations.
Introducing structural reforms to further liberalize the market must be a key priority for the conservative-led government in the coming weeks.