Task Force Praises and Warns

Despite encouraging signs of stabilization, high unemployment makes things difficult for Greeks mainly due to the high jobless rate, according to Economic and Monetary Affairs Commissioner Olli Rehn commenting on the report by the Task Force in Greece published yesterday.

Besides highlighting progress made, the report also notes delays in a series of key sectors of the economy.

The liquidity problem is growing due to high interest rates, high required collateral, and the rise in non-servicable loans to banks.

The report examines solutions for these problems and proposes solutions, such as the partial funding of the Institute for Growth through EU subsidies, and the capacity for some funding from outside the banking system. The qovernment will have to respond to these proposals soon.

Regarding delays in reforms to improve the business environment and help exports, the report also calls on the government to stop thinking and start implementing changes.

The heightened efficiency of the tax administration is also praised.

Horst Reichenbach, head of the Task Force, also praised his own team for the technical assistance given, noting it had been crucial in the creation of new structures for managing public finances and tax administration.