“2017 will be a year of political, economic and social uncertainty because nobody knows what will evolve from the elections in the EU countries. However, I am optimistic for Europe and for Greece, Italy and Spain because a large number of reforms have been implemented,” said president of the German Economic Research Institute, Marcel Fratzcher to Athens Macedonian News Agency adding that the first results are already visible.
“The Greek economy is recovering and Greece is developing again. The growth rate is low as it is in Italy but there are serious reasons indicating that the growth can be accelerated in the next year and afterwards. My hope is this acceleration to be faster than what it is now,” he said.
“Greece is a wonderful country which I deeply admire and in a number of issues is very rich,” he added and explained “In culture, in quality of life and innovative minds. Greece has made progress in the reforms but be we can’t fool ourselves that they will be completed in 2018 with the conclusion of the third program but in 10-15 years because Greece’s major problem is the state mechanism. Greece must have a state that will operate, where all the citizens will pay their taxes and will allow investors to take a licence without lengthy bureaucratic procedures. In the short-term Greece’s public finances should be consolidated in order in one to one and a half-year to set them under control, to have a perspective in order to not depend on is lenders any more.
Referring to the Christmas bonus given to low-income pensioners at the behest of the Prime Minister and Greek Finance Ministry, which led to the freezing of negotiations for debt relief, Fratzcher said “This disagreement is ridiculous. It is indicative of the real problem, the lack of confidence from both sides. I imagine that the lenders would not disagree if it was agreed on openly and with transparency.”
The main issue according to Fratzcher is “if the 3.5 percent primary surplus is realistic” saying that “the problem is how we will have this growth rate when there is the debt burden.”
(Source: ANA-MPA)
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