Bank of Greece (BoG) Gov. Yannis Stournaras on Friday again warned that standing obstacles to entrepreneurship in crisis-battered Greece are the relatively high level of taxes and social security contributions.
Bank of Greece (BoG) Gov. Yannis Stournaras on Friday again warned that standing obstacles to entrepreneurship in crisis-battered Greece are the relatively high level of taxes and social security contributions.
Speaking at a conference at the Hellenic-American Union (HEU), he reminded that the BoG has repeatedly called for changes in the country’s fiscal policy, towards the direction of making debt-laden Greece friendlier towards labor, entrepreneurship and growth.
“This can be achieved with a greater emphasis on slashing non-productive state spending,” the former finance minister stressed.
He said a reduction of such state spending in tandem with a more effective management of public assets – through legal changes in land uses, zoning etc. – higher bureaucratic effectiveness, and better tax collection, to allow for a reduction in tax rates, will boost growth.
“The market for goods in Greece continues to be among the most regulated of OECD countries,” he said.
In terms of touching on the current situation in the still bailout-dependent country, the influential central banker said forecasts for Greek economic recovery are based on the assumption that the reforms program and privatizations – as clearly stipulated in the third bailout - will be implemented as without a hitch.