5.COUNTRYNOTES - PDF document

5.COUNTRYNOTES ECONOMICPOLICYREFORMS2015:GOINGFORGROWTH©OECD2015GREECE Afternarrowingsteadilyuntil2008,thegapinGDPpercapitarelativetobestperformingOECDcountrieshassincesteadilywidenedaslabourproductivityandlabourutilisationhavesharplydeclined. RecentinitiativestomodernisethePublicEmploymentService(PES)arewelcomestepstoaddresspersistentlyhighunemployment.Thesizeablesocialimpactofthecrisiswillbefurtheralleviatedbytheintroductionofaminimumincomescheme.Recentreformstosimplifybusinesslicensingproceduresandredtapeforexports,aswellastoraiseefficiencyinpublicadministrationandtaxcollection,shouldboostcompetitiveness. Priorityshouldbegiventoensuringthatthemultiplereformsintroducedintherecessionandrecoverycontextarebeingfullyimplemented.Furtherreformsarealsoneeded,notwithstandingtheprogressachieved.Improvementsinactivelabourmarketpoliciesandthesocialsafetynetareneededtoaddressthelabourmarketandsocialconsequencesofthecrisis.Moreneedstobedoneintheareaofproduct Well-targetedactivelabourmarketpoliciesandtimelyimplementationofwelfarereformsalongwithimprovementsineducationshouldhelptoreduceincomeinequalityandpovertyrisk.Growthperformanceindicators1.Theemploymentrateisdefinedwithrespecttotheeconomicallyactivepopulation;apositivegrowthratecorrespondstoadeclineinthestructuralunemploymentrateandviceversa.2.Thisadjustmentvariableisaddedtothedecompositiontocapturetheimpactofnon-residentworkers.3.Percentagegapwithrespecttothesimpleaverageofthehighest17OECDcountriesintermsofGDPpercapita,GDPperhourworkedandGDIpercapita(inconstant2005PPPs).Source:PanelA:OECD,EconomicOutlook96Database.PanelB:OECD,NationalAccountsandProductivityDatabases 2003-082008-13Potential GDP per capita1.3-1.3Potential labour utilisation0.7-0.2of which: ment rate-0.3-1.0 p lo ment coefficient0.40.6Potential labour productivity0.6-1.1of which: Capital deepening0.71.1Labour efficiency-0.9-2.9Human capital0.90.7A. Average annual trend growth ratesPer cent -50-45-40-35-30-25-20-15-10199119931995199719992001200320052007200920112013Per centB. Gaps in GDP per capita and productivitycontinue to widenGap to the upper half of OECD countries GDP per capita GDP per hour worked GDI per capita 5.COUNTRYNOTES ECONOMICPOLICYREFORMS2015:GOINGFORGROWTH©OECD2015GREECE GoingforGrowth2015priorities PrioritiessupportedbyindicatorsEnhancetheefficiencyofactivelabourmarketpoliciesandofthesocialsafetynet.Well-targetedlabourmarketpoliciesandtimelyimplementationofwelfarereformsareessentialtoreducelong-termunemployment.Actionstaken:ThemodernisationofthePublicEmploymentServices(PES)isunderway,aimingatanewoperationalmodelwithgreaterfocusonindividualneedsandprogrammemonitoring.A2013lawupgradesvocationaleducationandapprenticeships.Apilotminimumincomeschemewasenactedin2014.Recommendations:Strengthenactivationprogrammesandtheirevaluation.ProceedswiftlywiththerestructuringofPES.Ensurethetimelyimplementationofthepilotminimum-incomeschemeand,drawinglessonsfromthispilot,introduceafull-scaleminimum-incomescheme.Reduceregulatorybarrierstocompetition.Remainingadministrativeburdenstobusinessoperationandweakcompetitionhinderproductivityandinvestment.Actionstaken:Reformsincustomsproceduresunderthe2013-15NationalStrategyforTradeFacilitationhavereducedredtapeforexports.Aframeworklawhasbeenapprovedin2014withaviewtooverhaulinglicensingproceduresforbusinesssetupandinvestment.Morerecently,alawwaspassedtopromotecompetitioninfourkeysectors,includingtourismandretailtrade.Manyregulatedprofessionshavebeenopenedup,forexampleintheareasoflaw,accountingandengineering.Asof2013,Sundayshoppinghasbeenalloweduptoseventimesperyear.TheliberalisationandreformoftheelectricityandgasPolicyindicators1.Sevenindicatorsofregulationinnetworksectorsareaggregatedintooneindicatorofregulationinenergy,transportandcommunications(ETCR)andcovertelecoms,electricity,gas,post,rail,airpassengertransportandroadfreight.2.Averageoftheproductmarketregulationsubcomponents:publicownership,involvementinbusinessoperationsunder“Statecontrol”andregulatoryprotectionofincumbentsunder“barrierstoentrepreneurship”.ForfurtherdetailsseeKoske,I.,I.Wanner,R.BitettiandO.Barbiero(2015),“The2013updateoftheOECDproductmarketregulationindicators:PolicyinsightsforOECDandnon-OECDcountries”,OECDEconomicsDepartmentWorkingPapers,forthcoming.Source:PanelA:OECD(2014),PISA2012Results:WhatStudentsKnowandCanDo(VolumeI,Revisededition,February2014):StudentPerformanceinMathematics,ReadingandScience,PISA,OECDPublishing,Paris,http://dx.doi.org/10.1787/9789264208780-en.PanelB:OECD,ProductMarketRegulationDatabasewww.oecd.org/economy/pmr 400420440460480500GREECEEUOECDA. Educational outcomes are lowAverage of PISA scores in mathematics, science and reading, 2012 Regulation in energy, transport andcommunications (ETCR)¹Domestic regulation²B. Regulatory barriers to competition remain above OECD and EU averages GREECE OECD 5.COUNTRYNOTES ECONOMICPOLICYREFORMS2015:GOINGFORGROWTH©OECD2015GREECEmarketsareunderway,includingownershipunbundlingoftheelectricitytransmissioncompanyandprivatisationmeasures.Privatisationisalsobeingpursuedinotherindustries(e.g.ports,regionalairportsandrailways).Recommendations:Pursueeffortstosimplifylicencingproceduresandreduceremainingadministrativeburdensforexports.Monitorcloselytheimplementationofthelawthatopensupclosedprofessionsanditsimpactsoncompetition.Proceedswiftlywiththeprivatisationprogramme.Improvethequalityandefficiencyoftheeducationsystem.Inefficienciesintheeducationsystemimpactadverselyonsecondaryandtertiaryoutcomes,henceonhumancapitalaccumulationandproductivity.Actionstaken:Insecondaryeducation,curriculahavebeenmademoreflexibleandanevaluationpolicyofschoolsandteachersisunderway.Inhighereducation,afirstwaveofinstitutionalconsolidationhasbeencompleted–toreduceduplication–andanexternalevaluationsystemisunderpreparation.Recommendations:Proceedswiftlywiththeevaluationofeducationalinstitutionsandteachers.Makeschoolsmoreautonomousandaccountable.Implementfullytheprovisionsofthe2012lawsonhighereducation,includingtheintroductionofperformance-basedfundingforuniversities.Completeasscheduledtheexternalevaluationprocessofhigherinstitutions.OtherkeyprioritiesEnhancetheefficiencyofpublicadministration.Anefficientpublicadministrationisessentialforhigh-qualitypublicservicesandtherapidimplementationofgrowth-enhancingstructuralreforms.Actionstaken:A“mobilityscheme”wasdevelopedin2013toaddresschronicstaffingallocationproblemsinthepublicsector.Anewsystemforrecruitingmanagersiscurrentlybeinglegislated,whilestepswerealsotakentoimprovethecurrentevaluationsystemofcivilservants.Thereorganisationofministriesandpublicentitiesisunderway.Recommendations:Proceedswiftlywithestablishinganevaluationsystemofstaffperformancebasedonclearindividualobjectives.Enhancefurtherthedevelopmentofe-government.Enhancetheefficiencyofthetaxsystem.Taxevasioniswidespread,hamperinganeffectiverevenuecollectionandraisingsocialconcernsaboutanunfairlydistributedoftaxburden.Actionstaken:Reformsin2013-14simplifiedthetaxsystemandbroadeneditsbase,includingbyremovingseveraldeductionsandcreditsofthepersonalincometax,reducingthenumberoftaxbracketsandunifyingmultiplepropertytaxes.Measureswereintroducedin2013toenhancetheefficiencyoftaxinspectionandtaxdebtcollection,includingbytransferringresponsibilityofcollectionofsocialsecuritycontributionstoasingleentity.Theautonomyofthetaxadministrationwasalsoincreased. 5.COUNTRYNOTES ECONOMICPOLICYREFORMS2015:GOINGFORGROWTH©OECD2015GREECERecommendations:Enhancetheefficiencyoftaxcollection.Improvetheeffectivenessofauditsthroughbettercross-checkingprocedures.Speedupcourtproceedingsinordertostrengthenenforcement. ReformareasnolongerconsideredapriorityinGoingforGrowth ForGreece,allpriorityareasfromthe2013issueofGoingforGrowtharemaintained.BeyondGDPpercapita:Otherpolicyobjectives1.TotalGHGemissionsincludingLULUCFinCOequivalents(UNFCCC).TheOECDaverage(excludingChile,Israel,KoreaandMexico)iscalculatedaccordingtothesamedefinition.2.ShareinworldGHGemissionsiscalculatedusingInternationalEnergyAgency(IEA)data.3.Householdincomeacrossthedistributionismeasuredbyincomestandardswithvaryingemphasisondifferentpointsofthedistribution–fromthelowtothetop-endofthedistribution.Seemethodologicalnotesattheendofthechapterforthecomputationofhouseholdincomeacrossthedistribution.Source:PanelA:OECD,NationalAccountsandEnergy(IEA)Databases;andUnitedNationsFrameworkConventiononClimateChange(UNFCCC).PanelB:OECD,NationalAccountsandIncomeDistributionDatabases 1001201401601801990=100OECD=100A. Emissions per capita are close to OECD averageAverage 2008-12 Total emissions per capita Real GDP per capita (2005 PPPs)Share in global GHG -12-10Median incomeIncome of the uppermiddle classIncome of the richGDP per capitaIncome of the poorIncome of the lowermiddle classB. Households at the lower end of the distribution lost relative ground amid a generaldecline in incomeAverage annual growth rate in real householddisposable income, 2005-11 GREECE OECD