ND leader: Creditors accepted every tax proposed by Greek govt instead of reasonable spending cuts

Main opposition New Democracy (ND) leader Kyriakos Mitsotakis was equally critical of both the leftist Greek government in power and creditors, in referring to economic policy in the recession-battered country over the last year and a half and especially in the wake of last month’s conclusion of the first review of the Greek program (third bailout).

Mitsotakis spoke on Wednesday evening at a coastal resort southeast of Athens, where the annual Economist group conference took place. The venue offered the opportunity for a “mini summit” between top Greek government officials and representatives of the country’s institutional lenders.

The former minister, who was elected ND president at the beginning of the year in an internal party election on a decidedly reform-minded agenda, charged that the Tsipras government merely pulled off a “political survival maneuver” in closing the first review.

In turning to creditors -- the EU Commission, ECB, ESM and IMF -- Mitsotakis said it was “incomprehensible” that they would agree to an “economic mix” based on “every conceivable tax" proposed by the Greek government.

“I will need to say a few words that may disappoint out partners and friends … Unfortunately, you agreed to an incomprehensible increase in taxes, instead of a reasonable cut in (state) expenditures to meet fiscal targets … In order to cover your back, you instituted a so-called “cutter” (an automatic spending cut mechanism), expecting the failure of the fiscal mixture that you are today applying,” he  told participants at the conference.  

He also charged that the leftist Tsipras coalition government has caused enormous damage for the Greek economy, to the tune of 21 billion euros in lost GDP during the 2015-16 period, while returning the country to the position it was three years ago.