"/>

News Analysis: Experts warn of plenty of work ahead for Greek recovery

Source: Xinhua    2018-06-25 22:14:49

ATHENS, June 25 (Xinhua) -- Euro zone officials greeted last week the upcoming end of the third Greek bailout program this August as Greece has returned to normality, but the situation on the ground is quite different, experts warn in Greece.

The deal struck at the Eurogroup meeting in Luxembourg on June 22 provides for some notable debt relief for Greece, adds to its cash buffer with a final bailout installment of 15 billion euros (17.5 billion US dollars) and introduces a strict surveillance model of quarterly inspections on which the implementation of the debt easing measures will depend.

"For the euro zone this is seen as a very positive development, as European Union officials are eager to point out this is an issue that has closed, that Greece needs no more money. This is important for them as the challenges the bloc is facing from the European south, especially Italy, as well as the Brexit prospect, mean they need to focus on other issues now," Nikolina Kosteletou, an economics lecturer at the University of Athens, told Xinhua.

"However the issue is not closed in Greece, as the people have not yet overcome the crisis, and their tax-paying capacity is exhausted. So far tax revenues have done well, but from now on it will be difficult, with the new pension cuts and tax hikes, and the consequences could be serious," said Kosteletou who is also a governing board member at the Independent Authority for Public Revenue.

The economy has not exactly recovered just yet. Unemployment stood at a particularly high 21.2 percent in the year's first quarter according to the Hellenic Statistical Authority (ELSTAT).

The growth rate remains rather feeble, at 1.4 percent in 2017 and projected at 2 percent this year by the Bank of Greece, far from the strong rebound originally anticipated by the creditors and the government alike, experts noted.

The creditors' requirement for a high primary budget surplus of 3.5 percent of the Gross Domestic Product every year until 2022, and 2.2 percent thereafter, confirmed the pension cuts planned from January 2019 and the reduction of the income tax discount as of January 2020.

"With such high primary surpluses and huge taxes, the economic growth will be hard to come. There even is a small possibility that in six or 12 months Greece reverts in a critical condition, for political or other reasons, domestic or external," warned Kosteletou.

Greece aspires to return to the markets in full, but the high interest rate of its benchmark 10-year bond in the secondary market, coming to 4.15 percent even after the favorable Eurogroup decision, means the country will find it hard to finance its needs for now.

The agreed enlargement of the grace period for the repayment of euro zone loans by 10 years and the extension of the loans' maturity from 2056 to 2066 will ease Greece's debt and make it sustainable, said Prime Minister Alexis Tsipras.

But at 177 percent of the GDP the state's dues to its official creditors remain particularly high, compared to a 110 percent rate generally considered as sustainable, according to experts.

"Greece's objective will now have to be the projection of an image of normality, with a stable tax environment that will be friendly to investors, so as to reach the goal of the increase of economic activity," noted Kosteletou.

Yet as austerity continues, over one in three Greeks (34.8 percent of the population) are threatened by poverty or social exclusion, per the latest ELSTAT figures, while foreign investments remain few and far between.

Experts add there is plenty of work to be done in the sectors the bailout programs directly touched on, such as banking and public administration.

The credit sector has to a great extent emerged from its crisis after three recapitalizations, with the effort focusing now on the further reduction of bad-loan portfolios.

Banks in Greece are set to achieve the targets set for slashing their nonperforming exposure stock through settlements, sales and write-offs, according to the latest report by the country's central bank, but more ambitious targets are required for the sector to resume financing the economy, the Bank of Greece warned last month.

In civil administration the reforms introduced by the economic streamlining programs are also seen as insufficient.

"After eight years of bailouts, what ought to be done in public administration has hardly been done. All the proposals brought to Greece over those eight years could have been implemented smoothly in a 15-year program by ourselves, and then we would not have needed recourse to foreign creditors," Vassilis Kefis, associate professor of civil administration at Panteion University in Athens told Xinhua.

He argued that "the Greek civil sector has a tremendous human capital that has been largely untapped. It requires proper management, because that alone could help the state mechanism take off."

The state mechanism still requires the transfer of knowhow in new technologies and innovations that the country's creditors have started offering through the bailout programs, the expert said. (1 euro = 1.16 US dollars)

Editor: Li Xia
Related News
Xinhuanet

News Analysis: Experts warn of plenty of work ahead for Greek recovery

Source: Xinhua 2018-06-25 22:14:49

ATHENS, June 25 (Xinhua) -- Euro zone officials greeted last week the upcoming end of the third Greek bailout program this August as Greece has returned to normality, but the situation on the ground is quite different, experts warn in Greece.

The deal struck at the Eurogroup meeting in Luxembourg on June 22 provides for some notable debt relief for Greece, adds to its cash buffer with a final bailout installment of 15 billion euros (17.5 billion US dollars) and introduces a strict surveillance model of quarterly inspections on which the implementation of the debt easing measures will depend.

"For the euro zone this is seen as a very positive development, as European Union officials are eager to point out this is an issue that has closed, that Greece needs no more money. This is important for them as the challenges the bloc is facing from the European south, especially Italy, as well as the Brexit prospect, mean they need to focus on other issues now," Nikolina Kosteletou, an economics lecturer at the University of Athens, told Xinhua.

"However the issue is not closed in Greece, as the people have not yet overcome the crisis, and their tax-paying capacity is exhausted. So far tax revenues have done well, but from now on it will be difficult, with the new pension cuts and tax hikes, and the consequences could be serious," said Kosteletou who is also a governing board member at the Independent Authority for Public Revenue.

The economy has not exactly recovered just yet. Unemployment stood at a particularly high 21.2 percent in the year's first quarter according to the Hellenic Statistical Authority (ELSTAT).

The growth rate remains rather feeble, at 1.4 percent in 2017 and projected at 2 percent this year by the Bank of Greece, far from the strong rebound originally anticipated by the creditors and the government alike, experts noted.

The creditors' requirement for a high primary budget surplus of 3.5 percent of the Gross Domestic Product every year until 2022, and 2.2 percent thereafter, confirmed the pension cuts planned from January 2019 and the reduction of the income tax discount as of January 2020.

"With such high primary surpluses and huge taxes, the economic growth will be hard to come. There even is a small possibility that in six or 12 months Greece reverts in a critical condition, for political or other reasons, domestic or external," warned Kosteletou.

Greece aspires to return to the markets in full, but the high interest rate of its benchmark 10-year bond in the secondary market, coming to 4.15 percent even after the favorable Eurogroup decision, means the country will find it hard to finance its needs for now.

The agreed enlargement of the grace period for the repayment of euro zone loans by 10 years and the extension of the loans' maturity from 2056 to 2066 will ease Greece's debt and make it sustainable, said Prime Minister Alexis Tsipras.

But at 177 percent of the GDP the state's dues to its official creditors remain particularly high, compared to a 110 percent rate generally considered as sustainable, according to experts.

"Greece's objective will now have to be the projection of an image of normality, with a stable tax environment that will be friendly to investors, so as to reach the goal of the increase of economic activity," noted Kosteletou.

Yet as austerity continues, over one in three Greeks (34.8 percent of the population) are threatened by poverty or social exclusion, per the latest ELSTAT figures, while foreign investments remain few and far between.

Experts add there is plenty of work to be done in the sectors the bailout programs directly touched on, such as banking and public administration.

The credit sector has to a great extent emerged from its crisis after three recapitalizations, with the effort focusing now on the further reduction of bad-loan portfolios.

Banks in Greece are set to achieve the targets set for slashing their nonperforming exposure stock through settlements, sales and write-offs, according to the latest report by the country's central bank, but more ambitious targets are required for the sector to resume financing the economy, the Bank of Greece warned last month.

In civil administration the reforms introduced by the economic streamlining programs are also seen as insufficient.

"After eight years of bailouts, what ought to be done in public administration has hardly been done. All the proposals brought to Greece over those eight years could have been implemented smoothly in a 15-year program by ourselves, and then we would not have needed recourse to foreign creditors," Vassilis Kefis, associate professor of civil administration at Panteion University in Athens told Xinhua.

He argued that "the Greek civil sector has a tremendous human capital that has been largely untapped. It requires proper management, because that alone could help the state mechanism take off."

The state mechanism still requires the transfer of knowhow in new technologies and innovations that the country's creditors have started offering through the bailout programs, the expert said. (1 euro = 1.16 US dollars)

[Editor: huaxia]
010020070750000000000000011100001372800531
大发彩票 大发app 凤凰彩票app 乐发iv游戏平台 凤凰彩票大厅 乐发彩票 乐发彩票app下载 大发彩票 乐发v官网 乐发lll 乐发lv入口 乐发iv首页 乐发ll登录 凤凰彩票大厅 乐发官网 乐发ii下载入口 乐发ll 乐发v平台 乐发v官网 乐发lll 乐发lv入口 乐发iv首页 乐发ll登录 乐发lv 乐发lll安装 乐发lv 乐发登录入口 乐发iv游戏平台 凤凰彩票登录 网信彩票 彩神 彩神彩票官方网站 彩神彩票官网首页 彩神官方app下载安卓版 凤凰彩票登录 彩神v3 凤凰彩票app下载 彩神官方app下载安卓版 网信快三 一分快3 快三彩票购彩平台 凤凰彩票官方 快3官网 网信彩票 快3app 网信彩票平台 百姓彩票平台 网信平台官网 快3app下载 百姓彩票 每日彩票 快3app 百姓彩票 每日彩票 快3app 百姓彩票平台 幸运5分彩快3 快3彩票app下载 百姓彩票网站网址 大发10分PK10 快3下载 网信彩票平台 网信平台官网 快3彩票官网app 凤凰彩票官方 彩神彩票 大发10分PK10 彩神v3 大发彩票app下载 百姓彩票网站网址 彩神购彩平台 每日彩票 官方正规快三彩票平台 彩神彩票购彩平台 百姓彩票 凤凰彩票购彩平台 凤凰彩票app下载 彩神官方app下载安卓版 网信快三 一分快3 快三彩票购彩平台 凤凰彩票官方 彩神彩票 大发10分PK10 彩神v3 凤凰彩票登录 乐发lv 乐发∨Il 百姓彩票网站网址 乐发彩票 乐发彩票官方网站 乐发lll安装 百姓彩票网站网址 凤凰彩票app下载 大发10分PK10 乐发2 乐发app 凤凰彩票 大发彩票app 乐发登录入口 乐发ll登录 乐发v官网 乐发官网 大发彩票app下载 凤凰彩票购彩平台 彩神彩票 官方正规快三彩票平台 一分快3 百姓彩票网站网址 凤凰彩票app下载 大发10分PK10 乐发2 乐发app 凤凰彩票 大发彩票app 乐发登录入口 乐发ll登录 乐发v官网 乐发官网 大发彩票app下载 凤凰彩票购彩平台 彩神彩票 官方正规快三彩票平台 1分快三平台 百姓彩票平台 凤凰彩票登录 幸运5分彩快3 彩神 乐发彩票 乐发 大发彩票 乐发iv游戏平台 乐发lv 乐发lll 乐发ii下载入口 乐发彩票官方网站 凤凰彩票官方网站 凤凰快3 彩神彩票官网首页 1分快三平台 百姓彩票平台 凤凰彩票登录 幸运5分彩快3 彩神 乐发彩票 乐发 大发彩票 乐发iv游戏平台 乐发lv 凤凰彩票app 乐发app 网信彩票平台 网信彩票平台 乐发iv游戏平台 凤凰彩票app 乐发lv 乐发彩票app下载 凤凰彩票app 网信彩票平台 乐发彩票app下载 乐发lv 乐发app 大发彩票安卓下载 大发彩票安卓下载 大发彩票 乐发彩票app下载 网信彩票平台 乐发iv游戏平台 彩神彩票 乐发彩票中心 极速快3彩票平台 人人快三凤凰 大发彩票app 大发彩票大全 乐发彩票 彩神彩票官方网站 乐发app 酷天堂彩票平台 凤凰彩票app下载 凤凰彩票大厅 凤凰彩票app 极速快3彩票平台 凤凰彩票 凤凰快3 乐发ll官网 乐发彩票中心 正规快三送彩金平台 凤凰彩票官方 乐发ll 乐发 网信彩票 彩神彩票 彩神彩票官方网站 大发彩票app 网信彩票用户 百姓快三 百姓彩票平台 乐发lv 乐发彩票app下载 彩信平台 网信彩票 乐发彩票官方网站 乐发∨Il 人人快三凤凰 凤凰彩票 凤凰快3 乐发ll官网 乐发彩票中心 正规快三送彩金平台 凤凰彩票官方 乐发ll 乐发 网信彩票 彩神彩票 彩神彩票官方网站 人人快三凤凰 乐发彩票 彩神彩票 乐发iv游戏平台 乐发彩票 大发彩票中心 凤凰彩票登录 凤凰彩票app 彩神彩票 大发彩票 乐发ll 大发彩票app 凤凰快3 凤凰彩票 彩神彩票 乐发ll 凤凰彩票 乐发lll 凤凰彩票大厅 网信彩票 彩神彩票 乐发lv 快盈彩票 乐发彩票官方网站 盈彩网投资平台 大发官网 一分时时彩 乐发lv 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 大发彩票 极速快3 乐发app 大发官网 乐发lll 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 大发彩票 极速快3 乐发app 彩神iv 大发彩票app 大小单双平台 一分pk10 乐发lv 快盈彩票 乐发官网 快彩彩票 百姓彩票 凤凰彩票大厅 网信彩票 乐发彩票中心 网信快3 乐发 彩神xl 三分快3 大发彩票 大发官网 乐发lll 快3平台 凤凰快3 乐发ll 全民彩票 乐发彩票官方网站 百姓彩票 乐发彩票 乐发彩票官方网站 大发彩票 乐发 分分快3 彩神vl 55世纪 55世纪 凤凰快3 乐发彩票 乐发lv welcome凤凰彩票 乐发ll 1分快3 彩神 彩神ll 1分快3官网 1分快3的平台 welcome凤凰彩票 三分快3 彩神x 彩神vl 凤凰彩票 彩神xl 大发彩票 凤凰彩票大厅 乐发官网 乐发ll 乐发lll 乐发lv 大发彩票app 大发彩票 乐发 乐发彩票 乐发彩票中心 凤凰快3 乐发彩票 彩神xl 腾讯快3 大发彩票 彩神xl 大发彩票 乐发彩票 大发彩票app 快3平台 乐发 1分快3 乐发彩票 彩神x 凤凰快3 彩神xl 彩吧助手 大发彩票app 快3平台 大发排列3 彩神iv 彩神vl 乐发IV 彩神x 一分pk10 大发排列3 乐发lv 快3彩票 乐发app下载 三分快3 快三平台助手 乐发彩票ll 彩神iv 乐发lll下载 盈彩网投资平台 乐发Ⅲ 一分pk10 凤凰彩票 乐发Vll 大发官网 乐发ll 大发彩票 乐发1 凤凰快3 彩神vl 乐发lx 百姓彩票 乐发VI 彩神x 乐发IV 极速快3 乐发 凤凰快3 网信快3 乐发lv 快3彩票 乐发app下载 三分快3 快三平台助手 乐发彩票ll 彩神iv 乐发lll下载 盈彩网投资平台 乐发Ⅲ 凤凰彩票大厅 乐发lv 乐发lv 乐发lv 凤凰彩票 大发彩票 大发彩票 凤凰彩票 乐发lv 凤凰彩票 凤凰彩票 乐发lv 乐发ll 凤凰彩票app下载 凤凰彩票 凤凰彩票 乐发lv 乐发ll 凤凰彩票app下载 凤凰彩票 凤凰彩票 乐发lv 彩神x 乐发 乐发ll 极速快3 乐发lv 乐发彩票中心 快3彩票 凤凰彩票大厅 彩神x 凤凰彩票app 分分快3 网信彩票 网盟彩票 凤凰彩票 百姓彩票 乐发 快彩彩票 乐发彩票 快3平台 百姓彩票 大小单双平台 凤凰快3 彩神xl 一分pk10 乐发lv 三分快3 大发彩票 乐发彩票 快3平台 百姓彩票 大小单双平台 凤凰快3 彩神xl 一分pk10 乐发lv 三分快3 大发彩票 极速快3 乐发ll 网信彩票 乐发lv 全民彩票 凤凰彩票app下载 快盈彩票 大发彩票app 大发官网 凤凰彩票 彩神iv 大发彩票 网信快3 凤凰彩票 百姓彩票