Greece.

This 2011 edition of OECD's periodic survey of the Greek economy includes chapters covering fiscal sustainability, structural fiscal reforms, and labour and product market reforms. Greece's ambitious program to tackle its economic crisis can succeed in rebuilding growth, jobs and living standards if the reforms are fully implemented, according to a new OECD report. The government faces the twin challenges of proving its determination to financial markets to bring down public debt, and of convincing the Greek people that the pain being experienced now is a Necessary Step towards a stronger economic future. The report underlines the need to continue to cut the deficit and then reverse the rise in public debt. Strengthening tax collection is urgent. More transparency should be introduced into the tax system, revenue collection should be measured more effectively and a tough line needs to be taken against tax evasion and vested interests. The report therefore recommends reinforcing the reform of labour and product markets to enhance competitiveness and raise incomes. By contributing to higher growth, a more competitive business environment will also help cut the public debt. The OECD shows that growth can also come from exports and investment, supported by fundamental reforms to address public sector weaknesses, by privatisations, and by the new package of EU structural funds.  Read more...