IMF Says Greece Needs Labor Reforms

IMF(Greece) – The International Monetary Fund, or IMF, released a report that indicated that Greece needs to undergo some labor reforms. They’ve taken a pretty strong stance that will hopefully enable these reforms to be pushed through the system.

In a recent report, the IMF said that they expect Greece will undergo labor performs that had been enacted by the previous government. Currently, the monthly minimum wage in Greece is 586 euros. Back in 2012, the minimum wage was 751 euros. The IMF has said that the amount needs to remain at this level since currently, the rate is one of the highest in Europe when looking at the per capita gross domestic product.

Greece has been in a recession since before the first bailout in 2010. The country just received the first payment for its third bailout. The Greek government needs this money to pay loans to the International Monetary Fund and European Central Bank. At this time, the IMF is not part of the third bailout because they have been at odds with the other international creditors. Despite this, the creditors insist that the bailout can proceed successfully without the IMF. Whether or not the IMF will eventually help support this third bailout remains to be seen. Currently, they are waiting for reassurances concerning measures to decrease Greece’s debt. However, they also want the Greek authorities to open up professions that they have previously closed in order to cut costs.

Although Greece has received international pressure to open these jobs, they have yet to take action. These include engineers, lawyers, and dock forklift operators. The IMF also wants Greece to implement the recommendations made by the Organization for Economic Cooperation and Development concerning barriers to competition in logistics, bakeries, and pharmacies. The IMF also wants Greece to take action against nonperforming loans.

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