Three years after Greece had to resort to a bailout loan, the IMF is still insisting on the deregulation of professions, particularly in scientific sector (lawyers, private physicians, accountants etc), which hinder the economy.
One of the first measures that the IMF proposed and which has not year been implemented was to support competition and the free up the market. The government will eventually have to resort to new legislative action, in order to create the circumstances that would allow the economy to develop.
The IMF argues that while the measures have produce a “remarkable drop” in wages, the price of goods has mostly remained unchanged, due to the heavy regulation of professions hindering competition.
The Center for Planning and Economic Research (KEPE) also came to similar conclusions. KEPE indicates that the government’s indecisiveness constitute any half-hearted attempts to deal with the problem ineffectual. While some professions have been deregulated to a great extent (chartered surveyors, tax consultants and customs agents), many others remain unchanged or experience further regulation.
KEPE notes that the greatest degree of regulation are the “scientific professions” such as lawyers, mechanics and health practitioners, as well as a few others such as taxi drivers and newspaper retailer. KEPE suggests in its study that apparent benefits in deregulated professions do not reflect a change in attitude, as much as a reduction in new professionals.
The KEPE study on the measurement of the intensity of regulations in professions and economic activities in Greece is available here.
