On its new report analyzing the amount of responsibility of the northern European countries towards the current situation, the International Monetary Fund (IMF) suggested that job cuts in Greece and shrinking of domestic demands would not increase productivity, which would only be achieved by structural reforms.  

According to the IMF, the Eurozone countries, which have shown a deficit, they have implemented painful external and internal measures of an internal devaluation strategy.  

The promotion of reforms in the Greek labour market and other defective economies in the Eurozone is highly important but not necessarily through wage cuts because salary reductions could accelerate the adaptability in the labour market and contribute to the reduction of unemployment, but cutting income would affect the demand and return of “internal balance” in the southern countries of the Eurozone. The IMF analysts would rather suggest a reduction in taxes withheld from wages, and therefore an increase in net earnings, eventually resulting to an increase in consumption taxes.