Greece not tough enough on rich tax evaders, IMF says
Source: The Guardian
Greece has not done enough to clamp down on "notorious tax evasion" by the rich and self-employed, leaving those on salaries and pensions to take most of the pain from the austerity measures imposed as part of the country's 240bn (£202bn) bailout, according to a much-anticipated verdict on its economic measures published on Monday.
The International Monetary Fund, one of the contributors to the Greek bailout, also said at the conclusion of its mission to the debt-laden, recession-hit country that a "taboo against dismissals" in the overstaffed public sector had led to a surge in unemployment in the private sector.
Greece has pledged to cut about 20% of the public sector or 150,000 jobs between 2010 and 2015 to help reduce spending, but progress has been slow, while unemployment has topped 27%. A bill has been passed recently to allow 15,000 public-sector posts to be axed.
However, the IMF said Greece had made progress in a socially painful recession. It had made "exceptional" improvements on its fiscal position, its competitiveness and preserving stability in the financial sector. "The achievements to date are evidence of a very strong and persistent determination on the part of Greece and its European partners to do whatever it takes to restore Greece to a sustainable situation inside the euro area," the IMF said.
Read more: http://www.guardian.co.uk/world/2013/may/06/greece-not-tough-tax-evaders-imf
Scootaloo
(25,699 posts)I thought that was the whole damn point of the IMF, to slurp wealth out of a nation and leave the poor with a gigantic "consulting fee" and 10% annual interest.
BelgianMadCow
(5,379 posts)taxing the wealthy (like, taxing the uber-rich church in Greece): not a dealbreaker
laying off the required number of public servants: dealbreaker (as in, a reason to withold the next bailout tranche).
I think it's just the IMF providing some lip service. They must be afraid of some blowback, now that some many people at once here in Europe are learning what exactly it is that the IMF does.
Confessions of an economic hit man comes to mind.