On 14-15 October 2011, a group of senior policy makers, practitioners and academics met at the London Business School to exchange views on the reforms that Greece should undertake to exit the crisis. The discussion focused mainly on four areas: tax evasion, public administration, privatizations, and the financial sector. The main proposals, developed in the White Paper below, were: (a) Establish new independent authorities with a clear mandate, evaluated based on focused performance indicators, staffed with technocrats, and accountable to the Greek Parliament, (b) One such authority should be responsible for the collection of taxes and customs duties (and the current mechanisms should be abolished), a second should be in charge of healthcare procurement, and a third should be monitoring the execution of the reform program, (c) Privatizations targets are unrealistic; the privatization fund should be given more resources to increase the value of the assets it manages; and it could employ a modest amount of leverage, (d) A recapitalization of Greek banks should happen in a way that prevents political interference in their management; financial supervision by the relevant authorities should be strengthened.
The White Paper has been written by Michael Jacobides, Richard Portes and Dimitri Vayanos. The views in the paper are their own, as informed by the discussions at the meeting. The White Paper in Greek here. A summary of the White paper in Vima newspaper here, in Kathimerini newspaper here, and in the VoxEU blog here.