GREECE has made progress in reducing government debt and improving its competitiveness, but must do more to fight its “notorious” tax evasion, the IMF said yesterday after a visit.
The International Monetary Fund, one of the indebted Eurozone country’s international lenders, said Greece must also open up labour competition, and follow through on structural reforms to ensure its economy recovers.
Measures to cut Greece’s budget deficit and make its economy more competitive are key conditions of its €240bn (£202bn) bailout from the troika, which includes the European Union and the IMF.
But tax evasion is endemic in Greece, denting support for the pro-bailout ruling coalition.
Middle-class wage earners and pensioners, the hardest-hit group in Greece’s six-year recession, account for 70 per cent of total personal income declared.