In the aftermath of the publication of the annual report of the Bank of Greece for 2021, in the context of the work of the 7th Delphi Economic Forum, which takes place in Delphi, on April 6-9, and is under the auspices of the President of the Hellenic Republic, Ms Katerina Sakellaropoulou, the Governor of the Bank of Greece, Mr Yannis Stournaras spoke with Mr Paschos Mandravelis, columnist of the journal Kathimerini, about the current situation and the prospects of the Greek economy, amid a fluid economic environment, driven by the consequences of the pandemic, but also of the Russian-Ukrainian crisis.
According to the governor of the Bank of Greece, in 2021, the Greek economy showed remarkable resilience to the problems and covered the losses of the previous year caused by the pandemic, moving forward with moves such as the digitalisation of the Greek public sector while reducing bureaucracy, transitioning to green growth, and investing in the “knowledge triangle”.
In relation to the part of the reforms and especially in the labour market, he said that, in previous years, there were many reforms also in the labour market, which is much more different and dynamic than in the past, but, at the moment, of high importance is the need to train the staff.
Moreover, Mr Yannis Stournaras also referred to the dynamics of the euro in previous years, stressing that “The euro went through a very difficult process, it almost dissolved. At this point, Greece proved that is playing a major role in history, by developing in the banking, the financial and the insurance sector. There is much more to be done to strengthen it, some of which were done during the economic crisis.”
Inflation, as well as what the banks are doing against the backdrop of its continued growth in recent times, was also the focus of the conversation, with Mr Stournaras pointing out that “before the pandemic, the European Banks postponed to increase inflation, they made great efforts, and we reached negative interest rates. The pandemic created a number of restrictions on supply chains or factories. The accumulated savings were converted into consumption, as a sign of excessive demand and price increases. We’ve had a series of supply-side shocks. But the biggest is now in Ukraine, this is a shock that contributes to the increase of inflation.”
But how does the ECB deal with this mixed economic situation with inflation? According to Mr. Stournaras, the three pillars of its strategy are flexibility, manoeuvrability and adaptation strategy.
The governor of the Bank of Greece also commented on the sanctions of the EU countries in Russia, with the freezing of its foreign reserves, referring to them as “a weapon that had never been used before”, adding that although opinions differ on this move, it does not enhance inflation.
In conclusion, Mr Stournaras underlined that, even in the midst of adverse economic conditions, it is an opportunity for the euro to strengthen itself, but in order to achieve this, the Eurozone must proceed to a higher degree of federalisation, with the issuance of a joint bond.
Latest News
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bank of Greece Governor Says EU will Retaliate to Trump’s Tarrifs
The Bank of Greece Governor defended the independence of central banks amid criticism from U.S. President-elect Donald Trump, who had publicly commented on Federal Reserve Chair Jerome Powel
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bitcoin Surges Toward $100K Amid Pro-Crypto Optimism in US
According to Reuters, the cryptocurrency surged to an all-time high, briefly exceeding $96,898 during Asian trading hours.
Greek Driver Violations at a Touch of a Button
Traffic offences recorded in the last five years by Greece’s “Driver Behavior Control System” are now available on Gov.gr Wallet
Milan Tops List of Most Expensive Streets, Athens’ Ermou Holds Steady at 15th Place
In Athens, following Ermou Street is the southern suburb of Glyfada and Tsimiski Street in Thessaloniki.
New Gov.gr Service Enables Secure Reporting of Minor-Related Delinquency
It should also be noted that via the recently introduced initiative ‘Safe Youth’ application citizens have access to specially tailored informative material regarding the safety of children and adolescents
Thousands Strike in Athens Over Soaring Living Costs and Stagnant Wages
Inflation, particularly in food prices, has been crushing Greek households
Greece Overhauls Property Valuation System
Greece plans to launch a revamped property value registry in 2025 and overhaul the way objective values are calculated to enhance tax revenue and improve transparency.
Greece’s New Tax Bill Foresees Tax Relief Beyond Big Business
Tax relief measures in Greece are proposed for freelancers, property owners and farmers, along with 'big business'