Papademos’s Letter to Barroso: Help Needed to Rejuvenate Growth

Posted by in Economy

Outgoing Greek Prime Minister Lucas Papademos on Wednesday sent a letter to the chief of the European Commission calling for help on a number of key policy areas that could rejuvenate growth and employment in the debt-wracked nation.

In his letter to Barroso, the Greek prime minister singles out several policy priorities that require special attention from Brussels. These are financial support for small and medium-sized enterprises (SMEs); advancing major infrastructure projects; reducing youth unemployment; implementation of the privatization program; policies in the energy sector; and, finally, the absorption and effectiveness of EU structural funds.

Also, Papademos acknowledges that successful implementation of fiscal consolidation and structural adjustment demanded by the country’s international creditors, the EU and the IMF, hinges on the far-reaching reform of the Greek state.

“The long-standing structural weaknesses of the public administration and, more broadly, the general government sector have been a source of misallocation of resources, diminished effectiveness of policy implementation, impediments to private sector entrepreneurship and, indeed, social injustice,” he said in the letter, describing state reform as a top national priority.

“The implementation of these policies will be complementary to the growth-enhancing structural measures of the second economic adjustment program,” Papademos said.

Letter Further Reading: short version ekathimerini; long version Prime Minister Office