Greece can and must enter a lasting virtuous circle as soon as possible. Today, fiscal consolidation is the first and foremost tool for promoting growth. But it does not suffice by itself. Our response to the crisis must have twin targets, in response to the twin causes that have led us to where we stand today.
Thus, fiscal consolidation must be  4  BIS Review 58/2010  undertaken together with a systematic effort to recover the losses in competitiveness, by setting specific quantitative targets each year. Further, under the present circumstances, Greece’s growth model cannot be based on consumption, public and/or private, as unfortunately was the case in the past. Instead, it must rely on investment and exports.