Greece gets boost from OECD

Financial Times
August 2, 2011

Greece’s latest rescue plan can succeed but implementation has to be “impeccable” and more focus is needed on lifting growth prospects, the Organisation for Economic Co-operation and Development has concluded.

In a boost for Athens, the OECD said Greece had been given the time needed to turn its economy around. Even under conservative assumptions, the country’s massive public debts could peak in 2013 and fall below 60 per cent of gross domestic product over the next two decades, the Paris-based body said.

Its cautious optimism supported the argument from eurozone leaders that Greece’s problems have finally been contained by a deal struck in Brussels in July – even though the eurozone debt crisis has since spread to engulf Italy and Spain.

However, the OECD warned that Greece’s government had to ensure the burdens and benefits of reforms were shared broadly in the country. “Clearly the key to success will be in implementation, which will have to be impeccable,” it said.

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