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I understand your perspective on this, I just think that bailout money should be contingent on measures to make Greece's public sector sustainable. At the very
by marcoperaza 11y ago
I understand your perspective on this, I just think that bailout money should be contingent on measures to make Greece's public sector sustainable. At the very least, that means cutting the deficit so it grows slower than GDP. In the long run, it means fixing Greece's deeper economic issues.
The EU is already being very generous by accepting tax hikes in a lot of areas where Greece should really be implementing spending cuts. But Syriza wants to convert even more of the spending cuts into tax hikes.
The structural reforms are more important. Deregulating professional trades, selling off nationalized industries, easing bureaucratic barriers to business. The problem is that the Greeks have elected an anti-capitalist far-left party, which is fundamentally opposed to the goal of the reforms.
If the EU is going to budge at all, it should be on accepting a longer term deficit reduction plan. They shouldn't budge on the structural reforms.