Greek Cabinet: Improving the Economy

By Laura Feingold

Today, November 22, the Greek cabinet discussed some very important matters. Europe experienced a tremendous economic crisis between 2007 and 2008 and Greek economy has not been not doing well since then. Some solutions have been discussed to improve the Greek economy. For instance, the ministers discussed the potential increase in the private sector, which is the part of the economy that is run by individuals and companies who are not controlled by the state and do not belong to the government. The improvement of education was also discussed and approved because it will include the shadow economy and economic activities of refugees, who will start paying formal taxes and bring more revenue for the state. The increase of taxes for the wealthy was also brought up but not entirely approved, because the wealthy already pay 45% as income tax, and some contended that it should be normal to pay equal taxes without regard for one’s social status. Finally, the President of the Cabinet added that a short term solution could be to encourage foreign direct investment which would provide economic growth. He also stated that a long term solution could include structural reforms in the bureaucracy.