The success of Greece’s economic reform program is in jeopardy due to the delays in its first review, for which the International Monetary Fund (IMF) is mainly responsible, Finance Minister Euclid Tsakalotos said on Wednesday, during a hearing in the European Parliament’s economic committee.
“It’s the government’s strategy to complete the review as soon as possible. If it doesn’t end soon, there will be no investments, no stability and we’ll end up at square one. We don’t have a lot of time,” he told MEPs, noting he has a difficulty understanding the IMF’s stance.
He also hailed the initiatives of the EP for its bigger involvement in the Greek program, saying a mediator is needed to examine the economic and social impact of the program and who will also play a role in the disagreements between the institutions and the Greek authorities.
Commenting on the main issues of the first review that are still open, Tsakalotos said they are the fiscal gap until 2018, the reform of the income tax, non-performing loans (NPLs) and the pension reform. He also said that the state’s spending for pensions looks a lot because revenues have dropped by 25% in the last 5 years.
(Source: ANA MPA)