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Concerned about the net losses related to the non-implementation of the pension reduction measure from 01/01/2019, mainly with regard to the country's credibility and market access, Nikos Vettas, General Manager of the Foundation of Finance and Industrial Research. On this basis, he argued that "the best thing to do would be for the economy to reduce and" function "to allow in two or three years to increase pensions for all".
As explained in the IOBE quarterly report, if the non-reduction of pensions is interpreted as the beginning of the reform, there will be a problem and "this can painfully prolong the period during which we are cut off from the markets".
Reliability, he stressed, should be preserved as an eyebrow. He also asked if the overcrowding that seems to be ensured in 2019 would be in the years to come, so that it would not be necessary to reduce pensions later and emphasized that the percentage of GNP Allocated to pensions in Greece is among the largest in Europe.
"Any change in economic policy should not give the feeling that it will be in the direction of fiscal irresponsibility or an anti-development orientation," he said. "If this happens, any postponement of the pension cuts will be short-lived and the reduction will become inevitable very soon, and the postponement will have an intermediate and wider impact on the economy."
As a precautionary measure, Mr Vettas also insisted on wages, saying that the minimum wage should exist but that it should be increased with the utmost care so as not to undermine competitiveness and lead to an increase in unemployment. IOBE has maintained its forecast for a growth rate of 2% this year, while for 2019, it forecasts 2.4%. Mr Vettas pointed out, however, that although positive, growth rates were below the level that would indicate convergence with the euro area.
He put a particular emphasis on the fastest return of the markets. As he has said, even if the period of irregular funding is extended, the likelihood that funding will eventually become difficult will increase. The question, he said, is not only about the public sector, but also about businesses, banks and households.
IOBE President Takis Athanasopoulos said that "despite the 25% reduction in our national income, we still have more wealth than the international competitiveness of our economy predicts" and stressed the need for Adopt good practices. other countries to achieve high growth rates.
The IOBE report, presented by Mr Michalis Vasiliades, states in particular that any extraversion of the economy was based on areas known for their comparative advantage: in the primary sector, where the contribution to employment reaches 12.5 % vs. 3.4% in the euro area and 7.9% in the tourism sector versus 4.9% in the euro area. In contrast, the manufacturing sector accounts for 10% against 15.9% in the euro area and down (-2.3% in 2008-2017).
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