Greece agrees to crack down on tobacco smuggling

One of the reform measures conceded by the Greek government before Tuesday’s agreement on the extension of the country’s bailout for four months was a crack down on tobacco smuggling, according to a story by Jim Yardley for the New York Times.

Euro zone finance ministers and other creditors agreed to extend the Greek bailout program for another four months, with caveats, after signing off on a reform plan hurriedly put forward by the Greek government, Yardley wrote.

But he added that the accord would probably not last long: the fact that both sides were claiming victory underscored the fuzziness and fragility of the new agreement.

‘Tuesday’s accord does not resolve Greece’s dire economic situation and pushes many of the major problems down the road,’ Yardley wrote. ‘Nor has this latest Greek crisis forced Europe’s leaders to address the fundamental problems of the economic and political structure of the euro zone.’

The reform measures, submitted to Brussels by the Greek finance minister, Yanis Varoufakis, included plans to crack down on the smuggling of fuel and tobacco, which is said to cost the Greek economy billions of euro a year in unrecovered tax revenue; modernize the pension system; and confront nonperforming bank loans.

“The most important challenge, a make-it-or-break-it thing, is their ability to deliver on tax evasion, corruption and smuggling of tobacco and oil,” Yardley quoted George Pagoulatos, a political analyst and professor at Athens University, as saying. “If they manage to make a difference on that, they will be able to raise the revenues that will allow them to fund their social programs and also be financially sound at the same time.”

The New York Times story is at: http://www.nytimes.com/2015/02/25/world/europe/in-greek-crisis-rare-moment-of-consensus.html?emc=edit_tnt_20150224&nlid=60534081&tntemail0=y&_r=0.