Tax cut a welcome move

The PASOK government has decided to lower tax rates in certain key sectors of the domestic economy, such as tourism. It now seems that the administration of Prime Minister George Papandreou has obviously realized that adopting a policy of high taxation has not brought about the anticipated increase in revenues but has instead hurt certain significant sectors, precipitating the trend toward deeper recession. The government’s economic policy planners have finally started to consult with representatives of the market before taking further crucial decisions, which was not the case during the early months of the Papandreou administration. In fact, that initial policy over the course of the Socialists’ first year in power has left the real economy gravely damaged. One can only hope that the government will not again lose touch with the market and representatives of industry. Otherwise, it will end up compromising Greece’s ability to take the necessary measures to safely weather the fiscal crisis.