Monday, May 9, 2011

Greece in line of fire over inability to hit targets

Financial Times
May 9, 2011

Greece last week took the unusual step of appointing a high-profile public prosecutor, renowned for unmasking a deadly leftwing terrorist group 10 years ago, to lead a fresh crackdown on tax evasion.

The choice of Ioannis Diotis to head the revamped financial police force signals a tough new approach, according to the finance ministry, which has tasked the new tax police chief with raising at least €15bn ($21.5bn) each year from tax dodgers over four years.

But the move suggests to some analysts that hope has once again triumphed over experience.

The revamp of Athens’ €110bn financial rescue package proposed at the weekend, barely a year after it was agreed, points to the country’s stubborn problems with implementing the bail-out conditions set by the European Union and the International Monetary Fund.

Persistent monthly revenue shortfalls, together with delays to public spending cuts and a privatisation plan, have prevented Greece from achieving reform targets.

More

No comments: