Ifo In­sti­tute crit­i­cises slow pace of re­forms in Greece

Financial Mirror (Cyprus) - - FRONT PAGE -

The Mu­nich-based Ifo crit­i­cised the slow pace Greece.

“The re­quire­ments of the third bailout pack­age for Greece have only been half­heart­edly im­ple­mented in the last seven months, but fresh fund­ing is be­ing used,” said Nik­las Po­trafke, Di­rec­tor of the Ifo In­sti­tute has of re­form in Cen­ter for Pub­lic Fi­nance and Econ­omy on Mon­day.

A new pri­vati­sa­tion fund su­per­vised by Euro­pean in­sti­tu­tions, for ex­am­ple, has not been set up to date, and the old HRDAF fund con­tin­ues to con­trol the as­sets to be privatised.

“In view of pro­ce­dures

Po­lit­i­cal ques­tion­able whether th­ese pri­vati­sa­tions can re­ally gen­er­ate 50 bil­lion eu­ros. In the past they have only pro­duced sin­gle fig­ure bil­lion sums.

The pri­vati­sa­tion goals of re­cent years have not been met and tar­gets have been re­peat­edly down­wardly re­vised,” ex­plained Po­trafke.

Although the dis­counted VAT rate was abol­ished on six Greek is­lands on 1 Oc­to­ber 2015, the lower tax rate con­tin­ues to ap­ply on sev­eral oth­ers.

More­over, af­ter the gen­eral strike in Fe­bru­ary, it seems un­likely that the govern­ment will be able to de­mand higher pen­sion con­tri­bu­tions.

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