Tuesday, December 13, 2016

Greece is not to save too much, warns the IMF – FAZ – Frankfurter Allgemeine Zeitung

The International monetary Fund (IMF) has once again warned not to be demanded of Greece high-saving efforts. According to a joint contribution of the IMF chief economists Maurice Obstfeld and to the Director of the IMF’s European Department, Poul Thomsen. The authors criticized the agreement reached by the Greek government and the European donors on a primary surplus (Budget surplus before interest payments) of 3.5 percent in the year 2018. For this objective cuts in the budget would be according to the projections of the funds needed, the recovery of the Greek economy vulnerable. Therefore, the monetary Fund comes to the result that Greece at the Moment, no additional Austerity programmes necessary. According to IMF ca lculations, the agreed measures are not enough, anyway, to reach the targeted budget surplus.

Winand von Petersdorff-Campen author: Winand von Petersdorff-Campen, Economics correspondent in Washington.

The Fund went with the contribution to the Public after he was accused of, he call for additional austerity measures from Greece. This is a wrong information. Greece should not save, but his fiscal policy reform. Because the way to Greece to spend his money and its taxes bring, shame to the economic growth. Without a radical restructuring of the public sector, it is in the eyes of the authors is impossible to achieve the targeted growth rates.

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The IMF staff, that the Greece problems are excluded, in spite of the large fiscal efforts in two key: income tax exempt one-half of the population of payments, while in the Rest of the Euro zone, only an average of 8 percent of the citizens of income tax obligations are spared. A pension system for the 11 percent of annual economic output goes on top of it (the Euro zone-average is 2.25 percent of gross domestic product). Instead of focusing on these important issues, have Athens, the government curtailed public investment and spending, with negative consequences. The decay of infrastructure arrester for the growth of the public transport is collapsing, because buses and spare parts were missing. Clinics mangle it to Material. The public cuts had now gone too far. Necessary for a fundamental modernization of the country, especially the establishment of a social network for the unemployed. Greece makes it to the companies and authorities is very difficult to fire people, because u nemployment assistance is largely absent.

The Fund the debts of Greece not to be sustainable and therefore calls, in addition to the reforms to a debt restructuring of the European donor countries. A certain understanding of the Fund but for the donor countries and their Insistence on a high primary surplus, Some to mute itself even higher primary surplus-to-requirements, most of the countries made nearly as generous pension and tax systems. The monetary Fund intends to decide in the next few weeks, whether he is involved at the next loan package for Greece. The Fund makes its involvement conditional on the fact that the debt burden for Greece is portable.

Germany insists on the financial and moral involvement of the IMF. There is little sign of a compromise. The Euro group has agreed last week to extend the maturities of loans to Greece and give the country for next year’s interest savings in the amount of 200 million. Anyway, the country saves thanks to the cheap solidarity-based funding by its Euro partners a year, 8 billion euros, or 4 percent of its gross domestic product, figured on the head of the European stability mechanism'. Klaus Regling, recently.

Greece remains under its unpredictable. The Prime Minister Alexis Tsipras surprised to 1.6 million pensioners with the promise of a Christmas bonus of between 300 and 800 euros. In addition, the government received VAT plans for Islands that are particularly affected by refugee flows. In Brussels now expects frantically downstream, whether the promise coincide with Greece’s Commitments. Tsipras is expected on Friday in Berlin. He must dress warmly. For the German capital city announced on Friday temperatures between 2 and minus 2 degrees.


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