Greece urged to tax the rich

Financial Times
December 7, 2010

Dominique Strauss-Kahn, managing director of the International Monetary Fund, has urged Greece to accelerate its restructuring effort, saying “this is a defining moment” for the country.

“The next stage of structural reform is even more crucial to unlock the true potential of the Greek economy,” Mr Strauss-Kahn said on Tuesday at the end of his first visit since the country agreed a Euro110bn bail-out with the the European Union and the fund last May.

“This is not an easy task . . . the progress made so far, however, offers a sound platform on which to build,” he added.

The governing Socialists face strong political opposition to the current round of structural reforms: cost-cutting at public sector corporations, measures to make the labour market more flexible and an overhaul of the he tax administration.

Mr Strauss-Kahn stressed the need to boost tax collection saying the “richest should participate” – a reference to Greece’s longstanding problem of tax evasion by wealthy professionals.

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