The Parliamentary office for the implementation of the state budget has directly questioned the government’s strategy on exiting the memorandum through borrowing from international markets.
The writers argue that the “end of the memorandum” as the government sets it creates “unrealistic expectations” while they also mention that “the Greek choice of exit to the markets and not a new program” was not based on a “realistic estimate of the international and European environment”.
They also estimate that whatever solution is ultimately chosen, exit to the markets through the ESM’s proverbial “anchor”, “will be accompanied by close monitoring of the fiscal policy, which is often ignored in public debate”.
In addition, the report criticizes the fact that there has been no national program set for the “after memorandum” era, suggesting that the macroeconomic balance is “fragile” and sustainable growth rates are still a ways ahead.
Concern is expressed as to the final outcome of the current financial year due to “designs and redesigns that have no end” of a policy of taxation while the report also touches upon reform policies as “our impression is of a construction site where the project is ongoing without an unambiguous plan, or is under constant renegotiation and never ends”.