Conditions for economic growth

A decision by eurozone economy ministers for member states to undertake the commitment to achieve balanced or surplus budgets by 2010 – rather than 2012 – is an important development for the future growth of the EU’s hard core, and above all for Greece. For a number of years, the country’s economy has been plagued by a vicious circle of deficits and creative accounting, and its citizens by austerity measures that have reflected continual reversals in fiscal stability. This decision by the eurozone members will in the short term result in a curtailment of public spending and investment and the amount of funds made available for social programs. However, it will also be prohibitive for governments to make generous handouts in the runup to national elections. As a result, conditions will be created for the Greek economy to operate in a climate of healthy public finances and steady growth that could, if the right decisions are made, lead to prosperity for all.

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