Brussels, le 08/10/2012 (Agence Europe) - Horst Reichenbach, head of the European Commission taskforce on Greece, was optimistic on Monday 8 October at an event organised by the Centre for European Policy Studies about the Greek government's determination to turn words into action. He said the Greek authorities had taken a firm line and were catching up after time lost due to political changes in the country. He praised the government's work in tackling corruption and tax evasion and progress in getting privatisations off the ground, but said that a lot of work still needed to be done. Since the summer of 2011, the Commission taskforce has been helping the Greek government with the technicalities of implementing its structural reform plan, and will remain in the country for a further two years.
In Reichenbach's opinion, the Greek government should concentrate on establishing a proper business environment in order to attract foreign investment, create jobs and return to economic growth. Greece is now in its sixth year of economic recession (see EUROPE 10700) and the country's economy is not getting any help from domestic demand, which is low and not expected to see any increase in 2013.
The Greek government is working together with the troika of lenders (the European Commission, the International Monetary Fund and the European Central Bank), which is often described as the bad cop, compared with the good cop of the Commission taskforce. On Monday 8 October, after a week of fruitful talks with the country's international lenders, the Greek finance minister, Yannis Stournaras, briefed his eurozone counterparts on the €13.5 billion savings package the government is presently fine-tuning ahead of endorsement by the country's parliament. The savings are required before the troika will agree to disburse the next instalment of aid, some €30 billion. (EL/trans.fl)