Too little, too late

The government’s intention to reduce certain tax rates, as announced on Tuesday by Prime Minister Alexis Tsipras, was a response to long-standing criticism from the conservative opposition, albeit the right decision.

That said, the government’s pledges are problematic, not because they were hastily unveiled ahead of elections later this month, nor because they are partially grounded on a plan that does not have the lenders’ consent.

Most importantly, Tsipras’ package is problematic because it is not part of a bigger plan to kickstart the economy. It is simply too little, too late to address the structural defects caused by four-and-a-half years of policies that suppressed growth and investments.

The surgeon has made a mistake. He carried out an unnecessary mutilation. And he is now trying to make up by prescribing an extra dose of painkillers.

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