The Organisation for Economic Cooperation and Development has calculated the European Union’s rescue deal for Greece will only slightly reduce the country’s debt.
In its annual report on Greece the economic think-tank said austerity measures will work – if Athens sticks to them – but that it will take over 20 years for the country to get its debt down to more sustainable levels.
Angel Gurria, head of the OECD, said: “After we have overcome this debt hurdle there will come the more difficult question of having sustainable, sustained, growth over the medium and the long term and that requires a very serious structural transformation of the Greek economy, of the Greek administration.”
On the wider situation in Europe Gurria said: “There is no debt crisis in the EU. There is no debt crisis in Europe. There are three countries that have short-term debt issues that are being supported by the EU and the IMF.”
In a veiled criticism, the OECD said Greece is capable of doing better on privatisations and structural changes and that it urgently needs to improve tax collection. It also suggested Greek banks consider mergers with foreign lenders to boost their funding.
It adds that the Greek banking sector is in a difficult situation because of exposure to government debt and says banks will continue to be reliant on European Central Bank funding.
- 1Kazakhstan’s currency plunges after central bank abandons USD peg
- 2China’s ‘Black Monday’ a symptom of wider malaise in the world’s second largest economy
- 3Chinese problems lead to plunging markets
- 4The currency war intensifies after China devalues the yuan
- 5European shares tumble as China panics investors
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4International news | euronews, latest international news
- 5Video footage shows massive explosion in Tianjin, China
- 6Latest News Bulletin
- 7Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 8Why World Elephant Day matters
- 9Who came out top in the US Republican television debate?
- 10UK: at least 7 dead after plane crashes into road in Brighton
- 11Snowden, Assange and Manning statues unveiled in Berlin
- 12Virginia:TV journalist and cameraman shot dead live on air
- 13ISIL militant group claims to have killed Croatian hostage in Egypt
- 14Earth Overshoot Day…Pushing Mother Nature too far
- 15Windows 10, three weeks on: the good, the bad and the ugly
- 16Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 17As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 18Momentum for Mars: Astronauts say mission is inevitable
- 19Migrant crisis pushing Greek island of Kos to the limit
- 20Who are the six EU countries with shortest memories on migration?
Wires > Business
- 02:56 CET ExxonMobil, BHP to spend 188 million pounds to replace Australian…
- 02:50 CET British service sector growth surges in August – CBI
- 02:30 CET Inmarsat says new broadband network offers bright sales prospects
- 01:09 CET Consumer confidence bounces back to 15-year high in August – GfK
- 00:34 CET U.S. OKs $3 billion upgrade of Boeing Apache helicopters for UK
- 23:50 CET Boeing wins $1.49 billion order for 13 P-8A aircraft
- 22:09 CET Lonmin sees full-year cash costs below guidance
- 22:07 CET China official blames Fed for global market rout, not yuan