Joseph Stiglitz: Four alarms of concern for the Greek economy

The Nobel laureate economist and Columbia University professor Joseph Stiglitz appeared pessimistic about the future of the international economy and overall stability on the planet, and especially after the 7th of October with the invasion of Israel by Hamas.

Stiglitz pointed out: “It is a difficult situation to make any prediction or even to interpret the events. If it was difficult before October 7, now it is even more difficult,” he said

On GREECE

The internationally renowned economist also spoke about Greece and expressed “concerns” about the course of the Greek economy, although he acknowledged that “the economic crisis in Greece lasted a decade and a half, but also the high rate of economic recovery”.

“On the other hand, if we look at the statistics, things are not so good,” he said and noted: “How well is Greece prepared? It has the highest growth rate but what about in the long run? There are the following concerns”, he emphasized and described:

1. According to the Economist Diligence Unit, Greece is at the bottom in terms of press freedom. And it’s an area that worries me. You cannot have a vibrant democracy without an active media

2. Greece did not have the structural restructuring of the economy. Your growth is disproportionately large due to tourism. However, you live in a dangerous part of the world

3. Climate change is making summers hotter and hotter and affecting tourism. And we say that there must be a differentiation of the development model. And there are two aspects: The first is climate and energy. You have the heritage of sun and wind. Do you make use of both? The weather is fickle but you also have fickle factors like dictator Putin or Saudi Arabia in terms of energy security. So you better rely on the weather. And the second aspect is that Greece keeps up with technological developments.

4. Paying off its debt will require primary surpluses for a while, and it needs strong growth for a while. And it’s not easy

On Israel, USA and Europe

Mr. Stiglitz appeared pessimistic about the economic policy of the US and Europe.

He called it “a mistake of the prescriptions of the central banks”.

He did not hide his concern about the results of the American elections. As he said, a possible victory of Trump in the Republican elections and then his eventual victory in the US elections will have huge implications worldwide.