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IMF announcement of daring reforms – What she asks for BUSINESS



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The IMF here sounds bold and "bells" about the changes made to the main memorandums at work, while calling for bold structural reforms in commodity markets, the business environment and the liberalization of professions.

The new … Washington tale arrives in Athens and the new government packed in the report of the Eurozone Foundation, and its forecasts for the economy are only optimistic, because it not only predicts a growth rate of only 1, 3% this year. , but also an estimate that the Eurozone will continue to move – or crawl against others – to 1.5% in the medium term. Referring to low productivity and demographic problems (aging population), the Fund "sees" a further breakthrough in income discovery in countries such as Italy and Greece, which suffer from high levels of unemployment and lack of significant structural structures. reforms.

And somewhere here begin … well, because within the 4-5 points the IMF sends its message to Athens, where it is expected that in the fall it will return for the postponed annual report under Article 4, where it will analyze in more detail. shortcomings and challenges for the Greek economy.

Priority reforms for the IMF

According to the IMF, support and further flexibility in the labor market should be a priority in the area of ​​reforms. What does he learn? First, the phenomenon of reforms in 2011 was abolished that the minimum wage increased by 10.9%, and that the sub-fund was abolished, which, according to the Fund, increases the risks of restoration of employment and competitiveness. Especially in view of the changes made to the collective redundancies and the necessary strike quorums, he estimates that they contain elements that can mitigate the possible negative consequences, but notes that the rules on labor protection have been changed, which further limits the flexibility of the labor market.

What does the fund recommend to work? Flexibility of policy, strengthening of business contracts against industry, taking into account specific circumstances. There is also a need for a transparent and periodic assessment of the collective bargaining framework.

The second field
necessary reformist intervention
competitiveness in the markets
products and services as well
improvement of the business environment.
According to the Fund, it is fixed
progress in some areas, such as partial
liberation of professions, relaxation
restriction of trade. He observes
however, although they were accepted
important legislative recommendations;
their implementation remains weak.
He also notes that although they have been simplified
licensing procedures
investments, key sectors remain
outside the new frame.

What she recommends
The fund? Look at the frame
for regulated professions, yes
to fight phenomena
bottlenecks in competition
prices. In addition, she asks for a new look
in the regulatory framework for markets
products, especially regarding
secondary legislation, that is, circulars
solutions as well as reinforcements
responsibility of the Commission
Competition, so she finds
distortion

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