Parliament report: Greece needs new growth programme

Fiscal adjustment and reforms are implemented in a constantly changing international and European environment, like a quicksand,” the Greek Parliament’s State Budget Office said in a report.

The quarterly report, covering the July-September period, released on Wednesday, noted that evidence of an unstable condition was the fact that a national programme for the era after the memorandum (ending in 2014) has not yet been drafted. The report noted that the most urgent issue was growth focusing on innovation and productivity and restructuring production.

“Each growth plan needs a clear distribution plan and all redistribution measures should serve this purpose. Redistribution for growth needed a deep tax reform and a social policy on solid foundations,” the Parliament’s report said, adding that any government should seek the right balance between the operations of the state and the market taking in mind international and European experience, an evolving core of consensus in Europe and the particularities of the Greek economy which is trapped in vicious cycles.

The report underlined that the end of the memorandum and the country’s exit to capital markets for borrowing did not mean that the Greek economy was not burdened by serious structural problems nor that there was no big social problem in the country. “All these must be resolved with the implementation of a convincing growth program, which has yet to be announced,” it said.