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An economic growth is expected in 2011 at the earliest

16 January 2010 / 10:01:44  GRReporter
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The government foresees a positive growth of the Greek economy since the beginning of 2011. This became clear after the conference of the council of ministers for the acceptance of the Program for stability and development, which is currently introduced for approval by the European commission. The final approval of the program is expected to happen on February 15th – 16th when the conference of EUROGRUP and ECOFIN will be held. The final goal is a decrease of the national deficit from 12,7% of the GDP in 2009 to 2,8% of the GDP in 2012. According to the plan this year its value should decrease with about four points and reach 8,7% of the GDP and in 2011 to decrease to 5,6% of the GDP.

Reaching these goals is stipulated in the detailed description of the Program for stability and development. The four points decrease in the value of the national deficit will be reached by a fiscal consolidation and reforms in the economic policy of the country. A series of changes mainly in the income part of the budget are expected to be made. More detailed the PASOK government plans an increase of the indirect taxes – from increase of the excise duties of tobacco and alcohol with a total income of 710 million euro. The reform in the taxation of private people and legal entities will bring additional one billion and one hundred million euro in the national treasury. With the introduction of a new type of taxation of the expensive real estate property and an additional under the program for social responsibility of the corporations the financial experts foresee an addition of about 1,5 billion euro. Under the program for liquidity of the banks in the treasure should flow 289 million euro more and another 2,4 billion will come from the measures for prevention of tax frauds and the optimization of the social security payments. The ministry of finance also provides for additional 1,4 billion euro from subsidies by the European Union funds under the Program for state investments.

The PASOK government plans a 10% decrease of the supplements on the salaries in the governmental sector which will bring about 650 million euro. Additional cut is also planed in the operational expenditures in the public sector of 360 million euro. In 2010 temporarily suspended will be the appointment of new specialists in the public administration on labor as well as civil contract, which will save approximately 200 million euro. 75 million will be the decrease in the expenditures from restricting the additional working hours. This year with a decreased financing will operate the social security funds as well as the programs for military arms which lightens the public expenditures with over 500 million euro. There will be a great decrease in the expenditures for the hospital suppliers where the government has decided to cut 1,4 million euro.

The ministry of finance underlined that a priority for the government n 2010 is the set of the foundations of a rehabilitation process of the Greek economy. In the three years Program for stability and development is stipulated the granting of 800 million euro under the law for state investments. In the beginning of this year will also start a program for additional qualification of the society at the amount of one billion euro. The government plans also to put reintroduce the value added tax (VAT) for the farmers as well as the re opening of 3000 new working places in the area of health care. The government of George Papandreou plans an additional social aid of 500 million euro, an increase of the 100 million euro of the total expenditures for assistance of the unemployed and 350 million euro for increase in the pensions of farm

Tags: EconomyPolitics Program for stability and development
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