The Organisation for Economic Co-operation and Development (OECD) now see "good progress" in getting reforms passed as legislation in Greece, although tangible improvements for the Greek economy and society will come with their all-important implementation.
By Vassilis Kostoulas
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The Organisation for Economic Co-operation and Development (OECD) now see "good progress" in getting reforms passed as legislation in Greece, although tangible improvements for the Greek economy and society will come with their all-important implementation.
In comments to "N", two top OECD economists described the course of developing what's widely known in Greece as the organization's "took kit" for reforms and various liberalizations. At the same time, they referred to a need for an even greater rationalization of public spending and speeding up the pace of the often sluggish Greek justice system.
In echoing the standing position by the IMF, the OECD points to the need for an expanded tax base in the country and lower tax rates. At the same time, the international organization cited a "possibility" that even more pension system reform may be needed.
In Athens, meanwhile, a "crisis observatory" established by one of Greece's most influential think tanks assessed that the impact of reforms taken so far "has probably had little or moderate significance".
According to the Hellenic Foundation for European & Foreign Policy's (ELIAMEP) observatory, the reasons deal with the inherent weaknesses of Greece's public administration, a lack of political will, failure to take "ownership" of the adjustment program, as well as what's termed as resistance by organized interests.
To date, the OECD has made no less than 356 recommendations, dealing with everything from the lifting of outdated regulations governing the wholesale markets, to the sale of retail pharmaceuticals, chemicals, the construction sector, mass media and even e-commerce.
According to OECD economist and competition expert Federica Maiorano, many of the reforms are in the process of implementation, and many of the previous recommendations are in the process of being included in legislation.
In comments to "N", she reminded that the organization's role is to advise the Greek side and offer observations on draft bills prepared by the country's administration. Maiorano referred to what she called good progress in all sectors, particularly in terms of pharmaceuticals and wholesale trading. At the same time, she clarified that when the OECB refers to "implementation" it means legislated actions, given that the organization is not in a position to evaluate whether the reforms entailed in the newly passed laws are actually being implemented.
On his part, top OECD economist Mauro Pisu emphasized that Greece must immediately rationalize public sector spending. Another priority, as he said, is boosting court performance in the country, i.e. slashing delays, and even reducing the number of cases that clog the domestic legal system.
Using digital technologies and promoting out-of-court settlement process, such as arbitration, along with specialized competition tribunals, would assist in this direction, he said.
Assessing the repercussions of specific regulatory acts would also help boost the quality of the entire regulatory framework, he said, while stressing that a key to improving the tax system is an expansion of the tax base and lowering rates.