Editorial Ta Nea: Persuasion
The economy needs these tax cuts in order to achieve a high growth rate. Such relief measures are necessary in order to exit the crisis and for the economy not to fall into stagnation.
The suspension of VAT tax on property transfers and the tax cuts in the tax bill which will be tabled in Parliament by the end of the month will be a relief for the broad swathes of society that shouldered the enormous tax burden of the last years.
The economy needs these tax cuts in order to achieve a high growth rate. Such relief measures are necessary in order to exit the crisis and for the economy not to fall into stagnation.
The economic recovery will also require other tools in order to be completed.
It requires a stable and just tax system, which many previous governments pledged to adopt. However, they failed to fulfil their promises.
It requires incentives to lure back the many Greek businesses that were forced to move to neighbouring countries to find a better tax environment.
It requires a state that meets its obligations to private citizens and private businesses just as it expects them to meet their obligations to the state.
The ills of the past cannot be eradicated overnight, especially in such difficult economic conditions.
Nevertheless, the government must signal its intentions in a manner that can persuade its partners and investors.
Recovery requires persuasion.
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