In addition, the economy is not yet operating at its productive capacity, which should help to contain cost pressures. But we cannot be certain that this benign environment will persist and that there are not more deep-seated forces emerging as a consequence of prolonged monetary accommodation.
High tax rates actions encourage the shift of activities towards the shadow economy and provide incentives for tax evasion. Hence, the fiscal mix is not sustainable and must change. More emphasis has to be placed on cutting non-productive expenditures, increasing the public sector efficiency, including the management of state property and improving the tax administration.