ECB Mersch: Greece Has Taken Vital Measures, Still More to Do

MNI News, November 8, 2013. All Rights Reserved.

FRANKFURT (MNI) – European Central Bank Executive Board member Yves Mersch praised the efforts of Greece’s government to tackle its structural and fiscal reforms but said there was much left to be done in order to ensure a lasting recovery for the struggling economy.

In prepared remarks for a speech at the Minsky Conference in Athens organised by the Levy Economics Institute, Mersch urged the continued efforts of the Greek government to tackle tax evasion, attract foreign investment and increase internal competitiveness.

"The Greek people have taken vital measures to ensure long-term fiscal sustainability. This will reduce the burden that will be passed to future generations," Mersch said "And I recognise that in doing so, current generations have made considerable sacrifices."

"Nevertheless, this is the painful cost of reversing the misguided economic policies and lack of reforms in the past. And fiscal sustainability – and hence intergenerational justice – is not yet assured," he added. "While the government appears to be on track to meet its 2013 primary balance target, Greece still has some way to go to reach the primary surplus targets of 1.5% of GDP in 2014, 3% of GDP in 2015 and 4.5% of GDP in 2016. This means that fiscal consolidation has to continue."