GREECE ECONOMY
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"When a politician talks about the
economy,
he is also talking about society.
Because behind the numbers, there are people"
Antonis K. Samaras
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Greece needs urgent changes. The breakthroughs in the economy and society
They must be brave and long-term. Our main objectives national strength and
social prosperity, which presuppose rapid economic growth, efficient public
administration, transparency in financial management and a modern welfare state.
The dominant elements of our policy are the consolidation of the rule of law and
the social justice. When the state asks the citizens for consistency, it must
give this first the example of honesty. In order for a state to be strict, it
must first be fair.
The concepts of productivity and competitiveness are for the Political Spring, a
guide to the country's economic course.
Truth is the catalyst in the relations of the state with the productive and
social actors.
On the basis of these principles, the Political Spring proposes four sections:
institutional arrangements. These sections, in turn, are governed by three basic
principles, which relate to the form of the national commitment to overcome the
economic crisis - to the state, to the businesses and employees:
Inthe state with the honesty and efficiency of the management, the regular
taking stock of the results of its policy and by implementing infrastructure
measures in the private sector.
Tobusinesses with the efficient use of resources and the honest support of free
market.
To the workers, who must support the efforts of the production units in the
context of equal and effective work.
These four sections are:
The establishment of the "National Competitiveness Council" with representation
of all social groups.
The appointment of a permanent Deputy Minister of the Budget - outside party
control - for the strict adherence to the fiscal plan.
The approval of the administrations of public enterprises and organizations by
competent cross-party parliamentary committees, with a term of at least five
years and beyond by meritocratic selection that will be the result of an open
competition.
The formation of new bodies. In industry, the "Sectoral Councils" and at the
government level the "Interministerial Body for Foreign Economic Relations".
A central axis of the Political Spring strategy in the field of the economy is
accelerating the pace of economic growth through the implementation of an
appropriate development and macroeconomic policy and the promotion of deep cuts
that the Greek economy and society to enhance production and productivity, as
well as the reduction of production and distribution costs.
Only in this way is it possible to:
To steadily improve the standard of living of the people and their
competitiveness of domestic production.
To ensure the country's swift and nationally beneficial accession to EMU in
order to positive expectations for the rise in active demand which, combined
with the reduction of interest rates will lead to a rapid recovery of investment
and economic growth. activity and to create the necessary conditions for the
acceleration of the economic growth rate.
On the other hand, this strategy ensures sound economic and budgetary resources
for the exercise of responsible social policy aimed at Relief for social classes
particularly affected by stagflation of the last fifteen years.
The strategic mistake of the governments of the last 10 years was the
unjustified commitment of all economic policy instruments (monetary, fiscal,
fiscal, income and foreign exchange rates) to meet only two objectives: the
reduction of budget deficits and the de-escalation of inflation.
In fact, with complete neglect of the other more urgent objectives, such as
improving competitiveness, accelerating economic growth, the organic improvement
of the balance sheet and the reduction of real interest rates.
Thus, the governments of the last 10 years believed in the following
absurdities, which lacked any theoretical and empirical background.
First, that nominal convergence would supposedly automatically bring real
convergence.
Second, that fiscal adjustment and the de-escalation of inflation were
supposedly possible through austerity programs, i.e. by controlling demand and
not by increasing supply.
Thirdly, that it was supposedly possible and nationally beneficial for the
country to join EMU with an overvalued parity.
Fourthly, that under conditions of an overvalued drachma, it was supposedly
possible to reduce interest rates, as required by the Maastricht Treaty.
As is well known, these positions were solemnly overturned by the reactions of
the markets that dragged the Government into a great devaluation of the drachma.
Our proposal for the path to the Euro was a proposal that with investments as a
vehicle, structural changes (reduction of the public sector, privatizations and
privatizations) and growth stimuli, but also with a macroeconomic policy mix
different from what was implemented, i.e. with the aggressive and planned slide
instead of the hard drachma, would have prevented devaluation, would have led to
the satisfaction of the criteria Maastricht and the country in the first gear of
EMU, through the overall increase in national competitiveness, the increase in
production and exports and the reduction of unemployment that plagues the Greek
youth today.
Our accession to EMU is a national goal and at the same time accepted by the
vast majority of the Greek people. But it is not an end in itself. Because our
membership of EMU is a matter of priority. It is accompanied by a regime of
economic self-reliance and internal social peace.
Many believe, unfortunately, that we must enter EMU "at all costs", even if
unprepared. We believe that if Greece does not become competitive, it will not
survive even within EMU, Not even from the outside.
If the country becomes competitive and enters the EMU "with its sword" and not
with Some "favor" (which is usually nationally harmful) will only then prosper.
Why else, The risks that will arise from an early and unprepared accession are
very great.
Today, unfortunately, our country does not meet any of the economic criteria of
Maastricht. And, above all, what seems extremely difficult, if not impossible,
To succeed within two years is the criterion of inflation and the criterion of
interest rates.
That is why we propose to the government to postpone our accession to EMU for at
least one time, so that during this period all the necessary measures that we
have repeatedly proposes with regard to privatisations and competitiveness, and
on the other hand, that there should be the necessary time frame for the
performance of the accompanying policies and to minimise the the social cost of
a violent economic adjustment.
In other words, we propose that we judge March 2001 on the basis of the
indicators of 2000 and not in March 2000 on the basis of 1999 performance and
indicators.
Otherwise, the train of our accession to EMU will pass Greece without stopping.
The philosophy of the economic proposal of the Political Spring is:
that economic growth of the country is determined not so much by its natural
wealth, but by the unparalleled virtues of our people and especially of our
young people, which can and should be exploited by drawing up an appropriate
economic policy framework, which ensures the necessary conditions for stability
and Confidence.
In this context, Political Spring in its detailed Economic Program proposes a A
series of measures, which briefly concern:
The State:
Objective: Consolidation (rationalization of government expenditure - combating
waste and corruption), the reduction and modernization of the Public
Administration and the creation of a New Citizen-State Relationship based on the
criterion of effectiveness and the real service of the citizen.
Privatizations:
Goal: The liberation of productive forces and the liberation of problematic
public utilities.
Criterion: Efficiency, investment-development and not cash logic for closing a
"black hole" in the Budget.
Design:
Delicate handling required:
I) Specific Program with a specific timetable and series of privatizations of
profitable and loss-making public enterprises,
II) Establishing an impartial and credible process and,
III) Protection of workers and prevention of mass layoffs.
Liberalization and Modernization of the Markets while establishing effective
monitoring systems, along the lines of EU countries, to ensure the interests of
society as a whole.
Execution of Major Projects: Transparency - Procurement Committee with the
participation of Judges
Constitutional Reform: which will prohibit the increase of the Public Debt by
increasing the public deficit accordingly, if the relevant expenditure does not
pass through the Budget approval procedure, i.e. to burden the budget deficit.
Permanent Deputy Minister of the Budget, in order to ensure honesty and
effectiveness in financial management and transparency in the implementation of
state procurement.
Abolition of Objective Taxation Criteria as well as the Tax Rate 35% for small
and medium-sized enterprises.
Stability and Simplification of the Tax System, in order to acquire the
necessary development and social dimension.
Competitiveness - Growth
Immediate reduction of employers' and workers' contributions by 20%, in order to
improve the competitiveness of domestic production, to relieve small and
medium-sized enterprises and to minimize the adverse effects of the devaluation
of the drachma on the price.
Exploiting the possibilities opened up by the devaluation of the drachma for
immediate acceleration of the rate of economic growth, especially of the
production sectors internationally marketable goods and the organic
consolidation of the current account balance. To this end, it is imperative to
immediately adjust the monetary policy to be followed. and exchange rate policy,
in order to lower interest rates and strengthen the competitiveness of domestic
production. With these measures and the reinforcement of production capacity can
be sustained in the long term. economic growth of 5%.
National Competitiveness Council with representation of all social groups.
Fight Unemployment - Work for All. This can be achieved by accelerating the pace
of economic growth and reducing indirect labour costs; entails the proposed
reduction of employers' contributions. At the same time, it is imperative that
improving mobility, vocational training and adaptability of the workforce. Other
measures include reducing working time in the context of individual and business
agreements, Abolition of the EFTE and the 1% contribution of Law 128/75, Free
Employment Zones for Youth, Investments - drastic increase in PDE for the
creation of new ones Positions.
The National Defense
Strengthening of the Armed Forces in order to ensure their deterrent power and
to ensure the necessary balance of forces and the protection of our national
Interests. In this context, absolute priority must be given to the creation of
of a profitable defense industry.
The European Union
New timetable for EMU: for structural changes, convergence of nominal values and
real indicators and social cohesion. Only in this way can it be ensured and to
make our accession to EMU nationally and socially beneficial.
Enlargement and preparation for the creation of the technical adaptations
required by the introduction of the new currency. To this end, a technical and
economic support for small and medium-sized enterprises.
Harmonization of the functioning of domestic markets with those of the European
Union of the EURO.
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