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"Debt dynamics depend importantly on broader structural reforms progress, which is needed to raise the economy's growth potential," he said.
Monetary policy has propped up economic growth, temporarily buying time for broader structural reforms that governments have failed to deliver.
Moreover, it is looking for inspiration in Dubai whereas India might be a more suitable model given Egypt's size and poverty.The biggest worry is that the mega-projects will distract the government from broader structural reforms.
Britain is more likely to get its way if it goes for broader structural reforms.But there are two big problems.
Prime Minister Shinzo Abe has mixed stimulus with broader structural reforms such as increasing the labor force participation rate, spurring tourism, and simplifying regulations to bolster foreign direct investment.
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But fiscal policy can work in tandem with broader structural reform efforts to support job creation.
In the medium to long term, however, the government will need to come up with a broad based structural reform agenda.
Other southern countries are engaged in a broad range of structural reforms, as well as the widely-publicized fiscal austerity measures.
As early as next month, a broad set of financial and structural reforms to clean up the banks and their borrowers could be set out.Hakuo Yanagisawa, the minister in charge of financial affairs, is leading the attack.
Late Tuesday night, however, in a speech to Parliament, Mr. Venizelos took an important first step by promising structural reforms and a broad crackdown on tax evasion.
What is essential now is that we work with other nations hosting large financial markets to reach a broad consensus on an outline for the needed structural reforms, certainly including those that the president has recently set out.
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