Greece’s economic competitiveness problems largely solved: Greek economist

Greece’s economic competitiveness problems largely solved: Greek economist
# 12 July 2012 23:15 (UTC +04:00)
Baku-APA. Greece’s economic competitiveness problems have largely been solved, Greek economist Yannis Katsoulacos, APA reports quoting Xinhua.

Katsoulacos said at an economic forum that while the progress Greece has made is not reflected in current statistics, this would become visible "in two to three years," according to reports of APA news agency.

Most economists have said that Greece must cut wages by 30 to 40 percent, something Katsoulacos said had already been achieved in the state sector.

He said it was important for politicians in Europe to understand that "reform and austerity are not the same thing," and that "no solution can come without consensus."

The economist said he was in favor of Greece remaining in the eurozone, and that a switch to another currency was not a solution to the debt crisis.

Also at the forum, Austrian Institute of Economic Research (WIFO) Chairperson Karl Aiginger said the problems concerning countries on the European periphery had begun in mid-1990s.

They started largely when political and economic situations had begun to worsen, such as when wages rose too high and too quickly, he added.
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