OECD praise comes with a warning

A report by the Organization for Economic Cooperation and Development has confirmed previous estimates by the European Commission and most international agencies showing significant progress in the key indicators of Greece’s public finances over the past three years. We must welcome the fact that progress is being acknowledged and the conservative administration has good reason to be satisfied with the results of its economic policy. Nevertheless, economic planners must realize that the international praise is accompanied by persistent reminders of the need to press ahead with crucial structural reforms, particularly the streamlining of Greece’s social security system and deregulation of the labor market. The government must be decisive in implementing changes in these domains. Not in order to generate fresh praise, but to ensure that the national economy continues to grow in the coming years.