FISCAL POLICY In 2016, Greece’s general government primary balance – as defined in the Economic Adjustment Programme – overshot the target set in the programme, for the second consecutive year. More specifically, the general government primary balance, according to the programme definition, turned out at a surplus of 3.8% of GDP in 2016, against a target of 0.5% of GDP.
If we choose to retreat from accepted macroeconomic practice in the world, we will find that the world can manage perfectly well without us and, what is worse, that Israeli companies and individuals prefer to secure their economic future outside Israel’s borders. This should be particularly worrying to those who are sensitive to the country’s social problems and who are forever demanding more resources.