Bank Of Baku

IMF: Greece can’t tax its people any further

IMF: Greece can’t tax its people any further
# 14 December 2011 08:08 (UTC +04:00)
Baku - APA-Economics. Greece has reached its limit in raising taxes and needs to refocus its austerity program on long-term spending cuts, the International Monetary Fund said Tuesday, APA reports citing Associated Press.

The warning came as the debt-shackled eurozone member heads toward its fourth year of recession, with revenues weakening despite draconian new emergency taxes.

"I think one of the things we have seen in 2011 is that we have reached the limit of what can be achieved through increasing taxes," Poul Thomsen, the IMF mission chief in Greece, told reporters in a conference call.

Thomsen, speaking about the IMF’s latest report on Greece’s progress, said the country’s structural reforms have fallen "well short" of expectations. But he said it was too early to say whether new austerity measures would have to be taken next year.
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