Staikouras slams 'monumental inefficiency' of gov't economic policy

Main opposition New Democracy sector-head for economic affairs Christos Staikouras on Tuesday blasted the government's economic policy, noting that the country's GDP had now shrunk to the same levels as in the 3rd quarter of 2005.
Since coming into power in 2009, the government had driven unemployment to 15.9 percent, inflation to 3.9 percent and the economic climate had collapsed, with construction down 62.8 percent and the retail sector down 17.5 percent, Staikouras said.

He also pointed to the dismal performance of Greek bonds and an increase in the cost of borrowing, as well as a galloping rise in public debt that had soared to 354 billion euro from 298 billion euro in September 2009.
Staikouras went on to accuse the government of "monumental inefficiency" in its efforts to reduce the deficit, pointing out that the Memorandum had originally called for measures amounting to 9 billion euro, that a further 11.6 billion had since been added, but this had only led to a reduction of the deficit by 7 billion euro.

"We are the only country in Europe that is in recession, the cost of borrowing is increasing, unemployment and inflation are galloping, the retail trade is shrinking, the psychology of the market is crumbling, spreads are widening, the debt is growing and the divergence from the government's targets is massive," he concluded.

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