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Strengthening environmental protection should be part of government plans to overcome Greece's economic and financial crisis, says a new OECD report. Speaking in Athens, OECD Secretary-General Angel Gurra said, "Well-designed environmental policy and investment can be drivers of economic recovery. Green policies and economic growth can reinforce each other to create new jobs while promoting cleaner technologies." The OECD Environmental Review of Greece recommends increasing and widening the scope of green taxes. This would increase revenues and help strengthen public finances. Revenues from green taxes have been falling steadily since the mid-1990s in Greece. They now account for about 2% of GDP, lower than many other European countries. The share of taxes in fuel prices is now the lowest among European OECD countries. To improve the environment without increasing pressure on the public budget, the Review recommends producers and users of polluting products pay for disposal and other environmental costs. It recommends removing subsidies and tax exemptions on activities that damage the environment. These include subsidies for irrigation water that encourage the unsustainable use of water resources, tax exemptions for coal-generated power, and tax reductions on home-heating oil that generate additional greenhouse gases and other pollutants. Instead of general subsidies and tax exemptions, targeted support should be provided only to those on low incomes. The review commends the new government's Ministry for the Environment, Energy and Climate Change which creates new opportunities to better integrate environment and energy policies. The review also gives credit to Greece's progress in strengthening environmental institutions and updating environmental laws. However, enforcement needs to be strengthened and the public should have more say in decision-making on environmental issues. Experience in France, where a mass mobilisation of the public has strengthened public support for new environmental measures, provides a potential model. The review warns that Greece's rich natural environment - one of the country's major economic assets - is under increasing pressure and makes a range of recommendations aimed at boosting the economy and protecting the environment. Greece's important tourism industry depends on unscarred scenery and clean beaches. Greece must better enforce environmental and land-use regulations to prevent further degradation of water quality and ecosystems in coastal areas. The review also recommends better integration of biodiversity protection into agriculture and tourism policies. Greece, it says, is one of the few OECD countries that has not yet developed a biodiversity strategy to protect its endangered species, such as monk seals and brown bears. Journalists can receive a copy of the OECD Environmental Performance Review of Greece from the OECD Media Division (news.contact@oecd.org; tel. +33 14524 9700). It is also available on our protected site for journalists (password required). For more information on OECD environmental country reviews, see www.oecd.org/env/countryreviews
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Strengthening our economies
Strengthening our economies for the future in key areas such as jobs, competition and taxation must now replace crisis management, says the OECD’s latest Going for Growth report. Governments have already started removing some of the emergency measures brought in to save the global economy from collapse.
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