Quarterly Report January - March 2013

Quarterly Report January - March 2013

The current report examines the observance of the Greek economy’s fiscal targets, which are set in the Mid- Term Programs of Fiscal Strategy, and focuses on the first quarter of 2013. The report was drawn up according to the present policy framework, as it is formed by the Memoranda that the Greek Government has signed with the European Central Bank (ECB), the European Commission (EU) and the International Monetary Fund (IMF). However, the members of the Scientific Committee of the Office follow the current debate, which takes place in a European level and concerns the need for a revised policy framework, i.e. the decisions necessary for a radical change in the so- called “architecture of the Euro zone”. For example, the efforts, made by Greece and other countries, for economic growth are much dependent on the role played by the European Central Bank (ECB) and the European Stability Mechanism (ESM).

The Director and the Scientific Committee are aware of the fact that the report is drawn up in a conjuncture characterized by a theoretical debate, which is open as far as its outcome is concerned, and by divergent findings drawn from empirical surveys. We will try to expose the answers given to crucial questions, not only in the main body, but also in a special chapter at the end of each report. In future reports, we will address issues, such as the efficiency of policy mix for fiscal adjustment (revenues versus expenditure), the relation between debt and growth, the expenditure multiplier and the tax multiplier, the efficiency of austerity policies, the new architecture of the European Union etc. We hope that in this way, we can contribute better to the workings of the 2 relevant Parliamentary Committees.

The Coordinator of the Office

Professor Panagiotis Liargovas