Greek Finance Minister: Economic Prospects

(GREEK NEWS AGENDA)  The next two years will be a period of intense reform, Economy and Finance Minister Yiannis Papathanassiou said on Monday (25.5), addressing an Economist conference in Athens. He also stressed that the growth model that helped Greece enjoy strong rates so far, must be adjusted to modern demands and expressed the government’s determination to improve the country’s competitiveness by taking measures to support innovation, reduce bureaucracy, promote alternative energy sources, and attract big foreign investments. Meanwhile, the International Monetary Fund (IMF) published yesterday (25.5) its annual report on the Greek economy, according to which the economy is expected to shrink by up to 2% this year with recovery beginning late in 2010. The IMF also recommended sweeping changes to tax regulations, continuing wage moderation and social security reforms.  Commenting on the IMF report, Papathanassiou said that “the Government is studying and carefully evaluating all the reports by international organisations pertaining to our country, even when it happens to disagree with certain estimates and predictions. In any case, it is clear that the next two years will determine the outcome of many significant issues for Greece’s present and future.”  Ministry of Economy and Finance: Speech by minister Papathanassiou at the Economist conference (in Greek); Kathimerini daily: IMF sees better days in late 2010