My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina...

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ECONOMIC CRISIS AND PUBLIC SECTOR

Transcript of My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina...

Page 1: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

ECONOMIC CRISIS AND

PUBLIC SECTOR

Page 2: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

My name is Iliana Diamanti and I am the group leader

My partners are : • Xrisanthi Vasiliadi • Christina Kakoulaki• Stavros Prassos

Page 3: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

INTRODUCTIONTHE SITUATION IN GREECE SECTORS THAT HAVE BEEN AFFECTED

BY GREEK CRISISPRODUCTIVITY IN THE PUBLIC SECTORCORRUPTION TAX EVASION

Page 4: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Greek economic crisis

High fiscal deficit Irresponsible management of public

expenditure Large imports over exports Low competitiveness Dysfunctionality of the labor market

Economic reforms under the supervision of the TROIKA

CRISIS CAUSES AND DEBT :

Result :

Page 5: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Transformation of public sector

Should be transformed from an institution of hiring party supporters to a new one that will work only productive and efficient employees

Transformation from an old unproductive public sector to a new efficient provider of services

Financial rewarding

Page 6: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Rapid increase of debt in 1980 Slower increase during 1990-2009

Table 1: Government debt (Source: OECD)

(1st May of 2010) the Greek government with prime minister George Papandreou decided to sign on a large EU/IMF loan package

3 years package Volume of 110 billion euro High interest rate 5.5%

Year 1980 1990 2000 2009

Gov. debt as %of GDP

26 71 101,5 115,1

Conclusion :

MEMORANDUM I FEATURES:

Page 7: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Ineffective memorandum

These led EU/IMF to recreate a a 2nd bailout loan package in July of 2011. This package was known at the 2nd memorandum Memorandum II features : Volume of 100 billion euro Repayment period from 7 to 15 years Interest rate decrease to 3.5% This package was also accompanied again by austerity measures which were focused again in the size of public sector by making the great crisis more severe.

Page 8: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Low effectiveness of education relative to the European average

Table 3:: Measures of outputs in education

  PISA score reading

PISA score mathematics

PISA score science

Number of universities

Greece 460 459 473 2

EU27 average

492 498 500 4

Page 9: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

But how we reach this evolution of the Greek public sector ?

The 1st is that Greek should be adjusted to foreign practices promoting meritocracy and trust

The 2nd one promotes the alignment of the evaluators and of those who will be evaluated , interest

Page 10: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

The total wage bill in the Greek public sector is actually higher than the European average For example ,In 2007 Greece spent the 11,2% of GDP ( Gross

Domestic Product ) for the payment of civil servants ,while the European Average was 10,4 of GDP

However, this difference is not significant when it is placed in a wider content For example ,Sweden spent the 15% of GDP.

Page 11: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

CorruptionCreating tougher penalitiesModernize the old one accounting practices Relationship between government and citizens

should be simplified and more anonymousChange attitudes and social behavior Fighting tax evasion

Page 12: My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina Kakoulaki Stavros Prassos.

Thanks for your attention