ADMS 2200
Greece is carrying out the toughest austerity program in Europe. The people have endured heavy taxes and abrupt cuts in pensions and wages, thus, managed to reduce the primary budget deficit from € 24.7 billion in 2009 to € 5.2 billion in just two years. Primary expenditure has fallen by 16.4% since 2009 with cumulative cuts in Nominal Public Sector wages over 30% and Greece managed to regain some of her competitiveness lost during 2000-09. Apart from fiscal consolidation and competitiveness recovery, under pressure from the European partners, the Greek Parliament has voted a number of reforms, including: labour Market reforms with 22% to 32% reductions in minimum wages; pension and social security reforms setting effective retirement age to minimum 65 years and minimum contributory period for a full benefit to 40 years; the legal framework for the liberalization of closed professions; a new Investment Law since February 2011; launching of landmark privatizations.
However the program has repeatedly not succeeded in its declared objectives. Both on fiscal consolidation and structural reforms as well as on the growth rate as the unprecedented unforeseen recession, has entered its fifth consecutive year. The delayed implementation of the agreed structural changes, the overemphasis on tax raises instead of expenditure cuts, combined with the ambiguity regarding Greece’s future in the Eurozone, led to a major loss of confidence inside Greece, a freezing of new investments and the general suspension of new economic initiatives, as well as to the mass flee of capital abroad. The country is becoming poorer and poorer with higher and higher rates of unemployment (21%) and too many inactive economic resources.
On 21 June 2011 ALDE presented a comprehensive proposal for Greece's exit from the crisis. In the preamble of this proposal it was stated that the strategy that is being followed for Greece is not comprehensive enough, insufficient, it "comes after the
However the program has repeatedly not succeeded in its declared objectives. Both on fiscal consolidation and structural reforms as well as on the growth rate as the unprecedented unforeseen recession, has entered its fifth consecutive year. The delayed implementation of the agreed structural changes, the overemphasis on tax raises instead of expenditure cuts, combined with the ambiguity regarding Greece’s future in the Eurozone, led to a major loss of confidence inside Greece, a freezing of new investments and the general suspension of new economic initiatives, as well as to the mass flee of capital abroad. The country is becoming poorer and poorer with higher and higher rates of unemployment (21%) and too many inactive economic resources.
On 21 June 2011 ALDE presented a comprehensive proposal for Greece's exit from the crisis. In the preamble of this proposal it was stated that the strategy that is being followed for Greece is not comprehensive enough, insufficient, it "comes after the