The second economic adjustment programme for Greece : third review - July 2013

Greece continues to make overall, albeit often slow, progress under the second economic adjustment programme, with several important actions being delayed. Important progress has been made on public finances and the recapitalisation of the four core banks has been completed. The legal basis for the new semi-autonomous revenue administration has been created, but perseverance in implementing the ongoing reforms will be key to deliver concrete results in the fight against tax evasion. Several important structural reforms have been implemented in the areas of healthcare, the opening of professions, and public financial management. However, far-reaching reforms are still needed in many other areas, including public administration reform, improvements of the business environment, energy and justice. The economy would also greatly benefit from a more determined and effective implementation of the privatisation programme. While declining unit labour costs, supported by the successful labour market reform, are improving cost competitiveness, the on-going product markets reforms need to be accelerated and reinforced to speed up the transmission from costs savings to lower prices.