The International Monetary Fund insists on further pension cuts in Greece citing not fiscal necessities but claiming the country must send a clear message to investors and the markets. During a briefing on Thursday, IMF spokesman Jerry Rice said the measure was voted and adopted in 2017 and it is not new.
The position of the IMF is that implementing this measure “will not only improve the long-term prospects of the social security system it will also send a clear message to investors and the markets that Greece remains on the path of reforms,” Rice said.
He added that this move will create the conditions for a most balanced system of social policy as it create fiscal space also for other growth policies and reduction of tax burdens.
“The need to shift to more growth friendly fiscal policy mix is helped by pension reform,” Rice said.
PS I suppose when the measure of broadening the tax-free basis and tax the poor with income below 6,000 euros is due in 2020, the IMF will claim that taxing the poor is a precondition investors put on the table in order to invest in Greece.
Me think: Stupidity prevails where there is lack of fiscal arguments.