My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina...
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Transcript of My name is Iliana Diamanti and I am the group leader My partners are : Xrisanthi Vasiliadi Christina...
ECONOMIC CRISIS AND
PUBLIC SECTOR
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
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 :
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
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:
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.
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
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
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.
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
Thanks for your attention