The govt’s dangerous policy mix

The fate of the government bill aimed at overhauling Greece’s pension system and labor market will be a major turning point for the country. If approved, the changes to the pension system will see Greeks retiring later and receiving lower monthly payments. Should the government see the bill through without outbursts of violence and social turmoil, it will have made a very significant step out of the current crisis. However, there will still be some distance to cover: The socialist administration will have to tackle a deepening recession and take measures to kickstart the real economy. The problem is that the government does not seem to have grasped the importance of this. So it continues to introduce hefty taxes, to throw scarce state money into wasteful corporations like the Hellenic Railways (OSE) and to put up with Economy Minister Louka Katseli, an old-school socialist. Sticking with this mix of people and policies spells political and social instability.