Authors: G. Hardouvelis, P. Monokroussos
Publication: Focus – Greece, Eurobank Research, December 16, 2009
In a closely-watched speech to domestic employer associations, labor unions and political party representatives on December 14, Prime Minister George Papandreou outlined his government´s plan to help correct Greece’s excessive deficit by the end of 2013 and win back the trust of European Union partners.
As widely expected by markets, the announced fiscal consolidation plan contained little in the way of public-sector wage cuts and new tax hikes. Instead, it was based on a mixture of measures to rein in widespread tax evasion, fight corruption, strengthen transparency and accountability in the broader public sector and promote a ‘‘greener’’ development model for the Greek economy, which aims to strengthen productivity and competitiveness…