March 28, 2012 / 6:43 PM / in 6 years

Greece must tackle job cut taboo to escape crisis: IMF

LONDON (Reuters) - Greece must tackle its aversion to mandatory redundancies and the closure of public entities if it is to fully escape its debt crisis, the country’s International Monetary Fund mission chief said in London on Wednesday.

“Greece must deal with its own taboos,” said Poul Thomsen, IMF mission chief to Greece, speaking at a panel debate.

“So far there has been a taboo to let staff go in a mandatory manner from what is a highly overstaffed public sector. There has also been a taboo to close entities that are no longer needed.”

Thomsen added that there was no more scope for tax rises, or across the board cuts in wages and pensions.

Reporting by William James and Nia Williams

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