It would be a grave mistake if the International Monetary Fund or the German government were to demand stricter fiscal measures from Greece than those which are laid out in the proposal put forward Monday by the leftist government.
Some of the tax measures included in that blueprint are, in fact, extremely counterproductive. Instead of serving as a tool to adjust incomes in a fair manner, they will have a horizontal impact, harming anyone who contributes to the country’s real economy.
The government’s insistence on protecting the public sector and its refusal to tackle the crucial issue that is social security reform have resulted in brutal tax rates. This may be welcomed among SYRIZA voters, but it is damaging for the economy. If international lenders return with fresh demands for more measures, Greece will find it hard to avoid sliding deeper into recession.