04/05/2010 - Statement by the Secretary-General Angel Gurría
We welcome the fiscal consolidation plan and loan package agreed by the Greek government, its Euro area partners and the International Monetary Fund. The plan provides Greece with the breathing space it needs to bring its public finances under control. Its full and timely implementation will stabilise public debt and strengthen the economy.
The plan necessarily involves painful measures, including cuts in public sector wages and increases in VAT and other indirect taxes. But they are absolutely necessary to resolve the current crisis.
Just as important, the package also foresees the introduction of necessary structural reforms. Some of the measures announced such as pension reform, improving labour market flexibility and boosting competition in the energy and transport sectors and among many professions, go to the heart of the current challenges faced by Greece. They are essential to boost productivity and living standards in the coming years.
By showing the political will to take the necessary action, Greece, with the support of its partners, can set in train a virtuous circle of healthier public finances and a stronger economy.
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