Greek FinMin says the new government ready to tackle high tax evasion

Tsakalotos says government more prepared now

Greek Finance Minister Euclid Tsakalotos predicted the Greek economy would return to economic growth in the second quarter of 2016 in an interview to Financial Times. Tsakalotos clarified that this would be possible only if the first review of the Greek bailout plan by the EU institutions was positive. As he stressed this would pave the path for a debt relief and the recapitalization of Greek banks, which could in turn lead to better economic conditions for more investment. The Greek Minister said he expected the first review to take place towards the end of November, adding that it is imperative the Greek government makes a strong start with the necessary reforms in October as this would ‘unlock’ the 3bln-Euro installment from the ESM. He added the importance of completing the bank recapitalization before the end of the year as this would avert a possible ‘bail-in’, a prospect stipulated by the new EU regulations. He said the Greek government would push for a discussion on a Greek debt relief, if the first review was successful, adding that contrary to the previous governments, including that of SYRIZA, this government was determined to seriously tackle the problem of tax evasion of the ‘rich oligarchs’. Tsakalotos said he had no illusions that his government would face strong resistance, as it embarks on reforms in the job market and the tax system and the inefficient public administration. “There are many pressure groups, some for good reason, that resist reforms”, he said. “This time we are much more organized than what we were before”, he concluded.