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Stability in the euro zone will end the opportunities for economic growth of individual states

26 August 2011 / 17:08:28  GRReporter
4875 reads

I think that all factors are taken into account when assessing the activities and progress of Greek reforms. The level of the recession surprised all and it was estimated that some of the warming of the Greek economy would come from increased exports, but the European and global demand, which would have pulled ahead the Greek exports did not happen. From this perspective, the recession in Greece largely is a result of external forces. In this situation, I believe that the objectives of the reforms and the financial aid will have to be revalued to meet the current state of the economic environment. However, I do not think Greece is likely not to receive the next tranche, because the reforms continue in compliance with the agreement, and the difficulties come from the environment in which these reforms develop.

Do you think the government is not doing enough to deal with the internal crises? Will the deviation from the objectives of reducing the deficit bring new measures?

Let's see how things with the new measures set out in the austerity plan will go in September and it will become clear then whether the government should trigger additional forces.

Are you optimistic about the development of the economy? Do you think that all the extra taxes, extra fees and higher claims will solve the problems facing the government?

The measures set out in the austerity plan contribute to the increase of budget revenues. The question is whether they are sufficient, taking into account the financial cost of recession. If the recession had stayed within the values calculated at the beginning of the year, the measures adopted so far would be sufficient. The current situation could require the adoption of additional measures. This will be clear soon.

Tags: EconomyMarketsGeorge PagoulatosCrisisEurobondsGreece
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