Friday, February 11, 2011

"Tax reforms are, so far, useless"

The IMF Athens permanent representative, Mr. Bob Traa, spoke in an event of the Bank of Greece. Mr. Traa criticized the Greek misgivings and frivolity in taking measures to
tackle the crisis.

Mr. Traa characterized the tax system changes as virtually... needless. The tax system reforms are 525 pages long so far (with the tax authorities unaware of most of them).

Mr. Bob Traa bluntly recommended that the government proceed directly to privatization in order to reduce debt, since so far the government has hired no consultants in order to achieve this goal.

His view is that debt can no longer be handled with cuts in pensions and that the state must proceed with privatization in order to reduce debt, to set the rules it wants, and then transfer operations of ports and other public organizations onto private corporations.

The Netherlands IMF representative appeared caustic towards the fact that the greek state does not know what it is paying and where its money is going. "The Greek authorities do not know the figures and debts of the state, a fact which undermines their own credibility", said Mr. Traa.

Mr. Traa also appeared caustic towards the client relations between state and citizen, saying that "there should be less -Fakelaki-" and paralleled the state's mechanism as a Mercedes moving at 20kmph, yet if it changes, it could move at 100kmph.

Mr. Traa also stated that there is a possibility to further increase the reduction of recruitment ratio of the public sector (More than 5  to 1).




source: PROTO THEMA