Last chance to bite the bullet

The early months of the PASOK administration saw a number of ill-thought-out tax measures introduced by the Socialists’ economic planners. A number of these measures wound up taking a hefty toll on sensitive sectors of the Greek economy and thousands of people lost their jobs as a result. The government of Prime Minister George Papandreou has now realized its mistakes, but it must still find the courage to correct them. However, little can be achieved unless ministers have the will to brave the political cost. The government has now been presented with one last chance: the new tax bill which is set to be unveiled next week. The proposed legislation will include all the commitments foreseen by the memorandum signed between the government, the European Union and the International Monetary Fund, such as an increase in value-added tax rates and tax breaks for businesses. There will be no other opportunity, or the government will risk stifling many sectors of the economy.

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