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.
- 1Former Greek finance minister confirms there was a secret ‘Grexit’ plan
- 2Golden shot: China shocks the commodities market with reserves revelation
- 3Oil price stability on the horizon as companies cut jobs and costs
- 4Microsoft says Windows 10 is a “new era” in personal computing
- 5Chinese stock meltdown and Windows 10 debut
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Russia unveils ‘straight’ flag, internet responds
- 3Seven reasons why Yanis Varoufakis is now a political legend
- 4Greek crisis: ‘Agreement reached’ after marathon talks
- 5International news | euronews, latest international news
- 6Nasa announces the discovery of an earth-like planet
- 7Is Saudi Arabia outlawing rainbows for being gay?
- 8Pluto: New Horizons space probe provides closest-ever pictures
- 9French actor Gérard Depardieu ‘a threat to Ukraine national security’
- 10International breaking news | euronews online world breaking news in video
- 11Latest News Bulletin
- 12BREAKING: Formal nuclear deal reached with Iran, says diplomat
- 13Greece votes ‘No’ in overwhelming rejection of bailout proposals
- 14Berlusconi linked with a shock return to government – in Russia!
- 15At least 10 dead in explosion in Turkish town close to border with Syria
- 16Greece clinches deal with eurogroup after marathon talks
- 17‘Imposed’ bailout deal must be implemented, says Greek PM
- 18Israel angry as Iran and West talk up nuclear deal
- 19European Union News | euronews: latest breaking news and headlines about European Union
- 20Varoufakis resigns after Greek referendum
Wires > Business
- 20:48 CET Subaru says suppliers have been told to treat workers fairly
- 20:45 CET Zambian villagers to take on mining firm Vedanta in UK court
- 13:19 CET Day of losses seen ahead for reopened Greek stock market
- 10:34 CET Iran plans to buy 80-90 Boeing, Airbus planes a year, post…
- 09:52 CET Former teenage soldier hatches millions from Chinese egg futures
- 08:05 CET Lloyds shareholders question government’s sale plan
- 22:21 CET Egypt says over half of summit promises turned into projects -…
- 19:24 CET Greece may seek up to 24 billion euros in first new aid tranche -…