FAZ: Greece needs less taxes and a smaller state

"Greek Development" is a commentary on the financial pages of Frankfurter Allgemeine Zeitung (FAZ), which refers to the reduction of GDP in Greece in the years of the crisis and in the efforts for economic recovery. The article points out that the country needs "fewer taxes, a smaller state, a more business friendly policy and vocational training for young people. ". It is only as the Greeks, with their entrepreneurial zeal and cosmopolitan spirit, will consolidate economic growth, achieve lasting prosperity and leave behind the crisis. "

Among other things, one can note:" Part of the old welfare was a bubble that was exacerbated by excessive recruitment of the public sector, wasted loans and excessive imports of goods. Ideally, a country that has been deeply reformed and reformed should have a growth rate of 4-5% over the next few years to bring the public debt-to-GDP ratio down from 179% to 150% in the next five years. Unfortunately, these scenarios are a greeting card. In 2017, Greece remained well below the Tsipras government's economic forecast. Instead of the 2.7% expected, it recorded a slight growth of 1.4%.

The columnist, however, believes that the problem of Greece is not high debt.As he points out, "payments (repayment) have been regulated for many decades, with rates of Low interest. This translates into favorable conditions for public finances. Without calculating borrowing costs, the state budget in Greece is expected to post a surplus of 3.5% by 2022 and 2% in the coming years. For 13 years, Belgium has managed to release a surplus of 5% on average, reducing its public debt from 130% to 90% of GDP. In summary, the FAZ column believes that "Greece needs fewer taxes, a smaller state, a more business-friendly policy and vocational training for young people. It is only as the Greeks, with their entrepreneurial zeal and cosmopolitan spirit, will consolidate economic growth, achieve lasting prosperity and leave behind the crisis. "