##ciation of the euro are expected to impact favourably on domestic economic activity. adoption of a national growth policy focused on reforms, for a definitive exit from the crisis and attainment of sustainable growth greece ’ s positive macroeconomic performance in 2014 and optimistic prospects reflect the significant changes made in recent years with tangible benefits, but also serious negative side - effects. key achievements include restored fiscal balance and the virtual elimination of the current account deficit, the latter reflecting a sharp contraction in domestic consumer and investment demand, but also an improvement in competitiveness. also, headway was made with a number of structural reforms in the functioning of the state, while steps were taken to modernise the tax system and tax collection mechanism and broaden the tax base. on the downside however, these positive results have taken a heavy toll on the economy and society in terms of income, employment and human and physical capital. these hard - won achievements must be preserved and consolidated, as they provide a cornerstone for the desired shift towards a new, export - led growth model. this is why it is imperative to quell uncertainties and ward off the risks that could cancel out the substantial progress made and undermine growth. the tremendous sacrifices made by the greek people must not be in vain. amongst the crucial matters being debated at present are the ongoing negotiations with our partners and the securing of smooth financing conditions for the greek economy as well as of unhindered bank funding. one key area that will facilitate the conclusion of a final agreement is the advancement of the structural reforms still pending. these reforms are much smaller in scope and would entail low cost compared with the huge changes made in recent years at a very high price for greek society. once these pending reforms are completed, there will be nothing but gains ahead for the economy. needless to say, greece would then have to implement its own programme of further reforms to solidify its basis for sustainable growth and social wellbeing. bis central bankers ’ speeches if we, on our part, adhere to our commitments, our partners can in turn be expected to reiterate their decision, as explicitly stated at the eurogroup meeting of 27 november 2012, to consider further measures to alleviate greece ’ s debt burden. this could be achieved by the methods envisaged in that eurogroup statement or by other methods and would boost greece ’ s growth prospects, provided that economic policy stays committed to fiscal adjustment, primary surpluses and reforms to re - launch the economy. this would also allow the

required primary surpluses to be gradually reduced, freeing up more resources for the financing of the economy. let us not forget that such further measures to ensure a reduction of greek public debt were, back in november 2012, made conditional to, and meant as a reward for, fiscal adjustment. this adjustment is now a reality. reaching a new agreement with our partners may be a necessary condition for the recovery to take root and gain traction. however, it is not an adequate condition for jump - starting the economy. at the present crucial juncture, what we need is a comprehensive and coherent growth plan geared towards strengthening the productive capacity through investment and, more importantly, through structural reforms. the first practicable measures that would pave the way in this direction include : ( a ) completing the reforms already launched, pursuing structural reforms in the goods and services markets and developing a “ smart economy ”. the further opening - up of closed professions, as well as of those goods and services markets that, according to oecd recommendations, still lack effective competition, must be speeded up. the privatisation strategy needs to give priority to accelerating the processes presently in course that, as mentioned previously, would help increase the efficiency of the companies being privatised, improve competitiveness, make the economy more export - oriented and – in the end – reduce public debt. meanwhile, the available eu funding resources ( under e. g. the nsrf, the investment plan for europe ) must be harnessed towards supporting knowledge and innovation and towards exploiting our comparative advantages in sectors of the “ smart economy ”, including the culture and creative industries. ( b ) consolidating fiscal achievements. the fiscal achievements must be preserved and consolidated. efforts must focus on structural measures to strengthen the independence and efficiency of tax administration, with the aim to tackle tax and contribution evasion. the application of modern, risk - based tax audit methods and the activation of a nationwide asset registry are fundamental in the fight against tax evasion. ( c ) reviewing tax exemptions and other favourable tax treatment. tax exemptions and favourable tax treatment, including reduced vat rates, need to be reviewed and streamlined. actions that could start immediately include the scrutiny, cost analysis and gradual abolition of the various exemptions from the general tax rules, unless they concern : ( a ) social groups hard hit by the crisis or living in conditions of poverty or ( b ) growth incentives providing much - needed stimulus to economic activity. ( d ) lowering