Areas Of Reformation In Greece Essay

970 words - 4 pages

Tax Reform

Tax reformation is one of new austerity measures that have been adopted by the Greek government with the EU supervision, which in the Economic Policy Reform 2012 report by the Organization for Economic Co-operation and Development (OECD), mentioned a few key issues regarding the reinforcement of legal measurement, tax evasion, transparency. One of the elements in tax reformation is rationalising personal income tax and eliminates a number of deductions regarding base broadening such as value added taxation. Moreover, property taxation needs to be reformed by increasing the tax, for instance housing and land. Some other case of tax reform is by combating tax evasion and enhancing tax compliance, tax administration discipline and transparency by developing a hazard-based analysis, audit system, increasing fraud penalties, revising tax auditors’ hiring rules and also reinforcing their supervision and the legal measures to curb corruption by tax personnel. (OECD 2012)

Human Resource Management

Pension Reform

In the report also noted that, in order to reform, minimum retirement ages need to be enforced and increased the legal and lengthening the contribution periods required for a full pension. Moreover, pension benefit and early retirement need to be reduced and at the same time revising the list of arduous occupations. In addition, by introducing a mechanism which would help managing retirement age to life expectancy that simplify and make the administration process are more effective and achievable. Some other component in the reform, is retirement age from 61 to 65 would need to be increased and it is estimated would save €1.28 billion in 2012 alone and reduction of supplementary pensions between 10% to 20%. (OECD 2012)

Product Market Reform

Privatisation

It also included privatisation programs which primarily centre on setting up public revenues in several energy and transport sectors which consist full or partial privatization which cost upward to €10 billion. To increase efficiency and improve a strong cooperation, public private partnership would be launched and concessions of the partnership as an attraction to the constitution. It also facilitates in developing some state-owned immovable assets and reduces government’s expenditure.

Furthermore, to catch up economic growth and pursue a better and be at par with some other nation state, searching for the new economic sector, such as service for instance, financial and banking would give a Greek government a second chance and a new hope to recoup from the crisis. In addition to established privatisation process, strengthening the power, independence or effectiveness of the competition authority would be the best means to increase productivity and quality of the end effect and economic sector such as retail trade would be as an example. As mentioned in the report, administration and management routine need to be improved in order to pursue good...

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