Mixed message for Greek economy
We can only welcome the fact that the Greek economy is finally coming out of European Union supervision. Pushing the fiscal deficit below the European Union’s 3 percent of GDP limit was a mammoth task. But not everything is rosy. The European Commission decision comes with a footnote. Despite success in halving the deficit, the public debt continues to soar. The debt is growing at a smaller rate, but the Greek state continues to borrow. The Commission’s warnings about the structural weaknesses of the Greek economy are not something that can be underestimated. The social security issue is a time bomb in the foundations of social stability. Public utilities are still accumulating debts as the public sector is squandering taxpayers’ money. Unless these structural defects are sorted out, the end of EU supervision will be a Pyrrhic victory.
