Greece has made a notable effort to implement its reforms, according to a European Commission report published this week on the course of reforms in Greece, Italy, Spain and Portugal.
At the same time, a new electronic register for firms, simplification of the process to start a business and the introduction of a system where it costs just 1 euro to start a company are the main reasons behind Greece’s 110-position rise in the World Bank’s ‘Doing Business’ chart, to 36th place for 2013. This was the biggest improvement by any country in the world from 2012 to 2013.
The report notes there has also been progress in the liberalisation of so-called closed-shop professions, although there is still great scope for improvement. While the Organisation for Economic Cooperation and Development has branded Greece and Portugal the “reform champions”, particularly when it comes to closed-shop professions, the EC report says when comparing them with countries such as the UK and Finland there is still much work to be done. The distance from the other member states that have more flexible regulatory frameworks remains significant.
The commission adds that Greece has been substantially damaged by the crisis, with a major impact on the speed of decision-making in the justice system, as court cases are taking longer now. Up until 2012 the application of reforms was dominated by a lack of ambition, whereas a series of reforms in the justice system is now ongoing, the report says.
The EC also notes that labour reforms have resulted in a 9 per cent increase in the country’s labour productivity. However there is no margin for complacency, the commission warns, as now that market pressures have eased, countries such as Greece, Portugal, Spain and Italy will have to remain entirely focused on applying a decisive reform agenda.
The report further highlights the additional benefits that will be reaped if reform efforts continue across all sectors.
Source: ekathimerini