A lack of new proposals
Yesterday’s Cabinet meeting, convoked to confront the problems faced by Greece’s economy, ended as an exercise in self-congratulation, with ministers careful not to say anything in criticism of the policy followed by current Economy and Finance Minister Nikos Christodoulakis. The announcements made by Prime Minister Costas Simitis after the meeting were a rehash of old figures and general promises. He reminded the people that the average income of Greeks rose from 64 percent of the European Union average in 1993, when the ruling Socialists regained power, to 71 percent 2001. «The main goal of economic policy, until 2004 (the end of the government’s current term) is real convergence (with the EU).» Simitis repeated for the umpteenth time. He added that his priorities included the fight against unemployment, a «quantitative and qualitative improvement in the worker’s position,» a series of structural reforms and making Greece a more attractive place for investments. The government’s problems stem mainly from the fact that, in order to attract investors, it must proceed with reforms that it does not dare to implement. So far, it has retreated from initial intentions to initiate bold reforms in the social security system, the labor market and the tax system. Even the half-baked solutions it has presented have been stiffly resisted by unions, several of whom staged strikes yesterday. The government is frustrated by its inability to sway public opinion toward the necessity of further pursuing reforms. In order to mollify large segments of the population, it has increased spending and borrowing, thus deviating from the strict fiscal policy followed between 1996 and 2000. In the end, the only decisions made by the Cabinet involved extra spending and an agreement for a further meeting, this time by the Inner Cabinet, to discuss economic and social convergence.
