The new economic package tries to thread the same needle as its predecessors. It has to reassure both established business, which benefits from the status quo, and the majority of voters, who don’t — or who at least get far less. The interests of these two blocs are often divergent and frequently contradictory. To date, the government has generally ended up providing half-hearted or even conflicting measures, satisfying neither. The new package hews to the tradition of making specific promises to reassure investors, with broader, vaguer proposals for everyone else. Business gets specific promises to eliminate high-profile regulatory blockages and improve infrastructure; global financial institutions and ratings agencies get a restrictive fiscal envelope. Adhering to the austerity strategy adopted a few years ago presents more significant challenges. This package hopes to crowd in private investment, especially through partnerships. The marked slowdown in the economy from 2014 was sp...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now