
Since July 2015, when Greece and its European counterparts agreed to a new bailout deal, the Greek government has made immense efforts to implement structural reforms under tight deadlines. And while the reforms have at times been controversial, they have also been successful, meriting EU recognition and aid.
Source: The Success of Greek Structural Reforms by Dimitris Papadimoulis – Project Syndicate
Now that the Greek government has delivered on its part of the bailout deal, it is time that its European and international counterparts conclude the first review of the program. This will allow the government to proceed to the second stage: coping with skyrocketing unemployment and putting the economy back on the path to growth. Greece has several sectors that could provide it a comparative advantage within the eurozone, most notably the maritime sector, energy, tourism, agriculture, and social entrepreneurship.
The Greek economy may still be struggling; GDP fell by 0.6% in the last quarter of 2015, according to Eurostat. But predictions that the economy would shrink by as much as 4% last year proved to be unfounded. And because of the government’s reforms and the country’s highly skilled workforce, the European Commission predicts a gradual return to growth by the second half of 2016. It is time that investors acknowledge the progress being made; the wise ones will begin to return to Greece.
Read more at https://www.project-syndicate.org/commentary/syriza-greek-reforms-success-by-dimitris-papadimoulis-2016-03#KDkWf2S98TTipqrf.99
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