Investment is vital for growth targets, analysts say

Analysts tell Kathimerini they view the government's program as a step in the right direction, with Standard & Poor's noting it will be credit positive toward the country's rating, as long as the pledges to creditors are fulfilled.

The economists stress that the key to a faster economic rebound in Greece and to the ambitious growth target of 4 percent in 2020 is in strengthening investment and accelerating privatizations and major projects, as well as significantly reducing bad loans in the credit sector.

Athanasios Vamvakidis, head of G10 FX strategy at Bank of America Merrill Lynch says reducing the heavy tax burden of the Greek economy is certainly welcome. "However, to make sure the government also respects the agreed fiscal targets with the creditors and to safeguard debt sustainability, the focus should now shift to reducing spending where possible and, even...