The high primary surplus targets and their systematic overachievement in recent years through the curtailment of public investment spending and high taxes have dampened the growth dynamics of the economy, reduced the competitiveness of Greek businesses, created a disincentive to work and invest, and caused tax fatigue, leading to a contraction of the tax base and an exhaustion of taxpaying capacity.
This review should be instrumental in identifying potential legacy problems. The treatment of legacy assets in the overall Banking Union project is an important issue in connection with European direct recapitalisation of banks.