As international experience has also shown, large public deficits and debts cannot foster growth; on the contrary, they undermine it. Speeding-up reforms in the public sector The stabilisation process has entered its second and most difficult phase.
Following acrossthe-board wage cuts and tax increases, it must now focus with determination on structural reforms in the public sector, so as to permanently reduce spending which stems from its inefficient operation. There is actually ample room for such changes. At the same time, we must seize two crucial opportunities, present today, which could act as a catalyst for re-launching the reform effort.