Areas of Reformation in Greece Essay

Decent Essays

Tax Reform

Tax reformation is one of new austerity measures that have been adopted by the Greek government with the EU supervision, which in the Economic Policy Reform 2012 report by the Organization for Economic Co-operation and Development (OECD), mentioned a few key issues regarding the reinforcement of legal measurement, tax evasion, transparency. One of the elements in tax reformation is rationalising personal income tax and eliminates a number of deductions regarding base broadening such as value added taxation. Moreover, property taxation needs to be reformed by increasing the tax, for instance housing and land. Some other case of tax reform is by combating tax evasion and enhancing tax compliance, tax administration …show more content…

It also facilitates in developing some state-owned immovable assets and reduces government’s expenditure. Furthermore, to catch up economic growth and pursue a better and be at par with some other nation state, searching for the new economic sector, such as service for instance, financial and banking would give a Greek government a second chance and a new hope to recoup from the crisis. In addition to established privatisation process, strengthening the power, independence or effectiveness of the competition authority would be the best means to increase productivity and quality of the end effect and economic sector such as retail trade would be as an example. As mentioned in the report, administration and management routine need to be improved in order to pursue good governance, by restructuring a complexity of licensing and contract processes, for example, in the business sector, and regulating tariff in electricity and gas, reducing barriers in the supply chain such in transportation, logistic and professional service would help to establish a skilful and efficient direction.

Public Sector Reforms

Government Expenditure

In a fiscal compact reform, reducing government expenditure is a crucial part in facing the crisis. European Institute has highlighted that government operational spending need to be cut by €200 million in order to pay the debt.

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