Finance Minister George Papaconstantinou on Tuesday outlined what he called the 10 most significant challenges facing the Greek economy in 2011, saying: “we have a lot of work ahead, we have structural reforms to ensure the sustainability of reducing deficits and viability of the country’s public finances”.

Speaking to reporters, the Greek minister sounded "open" to a possibility of extending the repayment period of loans received by the 110-billion-euro support mechanism, although he stressed that no decision over an extension has been taken. Moreover, he dismissed speculation of additional loans from 2013 onwards.

Papaconstantinou stressed that Greece’s aim was to return to capital markets in 2011, saying “we are doing our job. The rest will come in due time, depending on how things are going”.

Additionally, Papaconstantinou categorically reassured that “there is no issue of dismissals in the public sector”, saying that transfer of workers in the public sector would not be counted as new hirings. The Greek minister thanked his colleagues in government for their cooperation with the troika experts, while he criticised the opposition for its stance.

Amongst others, Papaconstantinou ticked off the 10 biggest challenges facing the economy in the coming year, including:
1. Better management and control of public spending with the appointment of economic supervisors to the most significant general government’s agencies, drafting a medium-term fiscal strategic framework for the period 2012-2014 aimed at reducing the fiscal deficit from 17 billion euros to 6.4 billion euros.
2. Combating tax evasion via provisions envisioned in draft law on tax legislation, such as accelerating tax trials, restructuring the finance ministry and merging tax agencies.
3. Reducing public sector enterprises’ deficits through the closure and merger of organisations. Loss-making enterprises will have to reduce their workforce but not with dismissals but with workers’ transfers.
4. Reforming the public sector. The minister said 40,000 employees will leave the public sector in 2010 and around 8,000 new hirings will be made in 2011 with priority given to education, health and insurance. A new payroll system for the public sector will be operational by the end of 2011.
5. Cutting overspending in health.
6. Labour relations. A new draft bill will be presented by the end of the year giving business agreements more power over sector agreements within certain limits without hitting the minimum wage.
7. Opening up of closed professions. A draft bill will be approved in the first quarter of 2011.
8. Business environment-growth. An action plan to deregulate energy markets will be presented by the end of 2011.
9. Financial sector. Restructuring ATEbank (in the fourth quarter of 2010) and operational division of a Savings and Loans Fund (first quarter of 2011).
10. Better management of state real estate property-privatisations with the aim to raise 7.0 billion euros in the 2011-2013 period and at least 1.0 billion euros in 2011.

Papaconstantinou said Greece was and will continue to be in a volatile international environment with great difficulties resulting to fluctuations in bond yield spreads. He said that an updated memorandum will be signed with the troika within the next 10 days.