In an interview with Reuters, Greek Finance Minister Kostis Hatzidakis stated that fiscal prudence was paramount, and that the country had to learn from past mistakes.
Outside the annual meetings of the International Monetary Fund and World Bank, Hatzidakis said increases in wages could only be put into place as long as they did not endanger the country’s debt-to-GDP ratio.
“We learned the lessons of the previous decade. Greece was living beyond its means,” Hatzidakis stated, referencing the crushing financial crisis.
Many analysts agree the debt crisis was brought about by a combo of unregulated taxation structures, inflated public sector pay, and high public debt. In exchange for massive bailouts for this debt, the EU, the European Central Bank, and the IMF imposed a harsh decade of austerity.
After a decade of reforms and bailouts, today Greece’s debt is shrinking and Greece’s finance ministry has committed to early repayment of some $8 billion in bilateral debt in the next four years, estimating that this would lower the country’s debt-to-GDP ratio – currently Europe’s highest – from 162% this year to 133.4% by 2028.
“We have the surveillance of the markets and investors. So we know that fiscal prudence is a precondition for us to convince everybody – the markets, the investors – that we are a credible government and credible country,” Hatzidakis told Reuters.
But for average Greeks, the financial situation is still quite dire. Unemployment is over 9%, Greece tops europe in rent payment struggles, and high inflation has nullified wage increases.
When asked specifically about the strikes of teachers and ship workers union that took place this week, demanding higher wages, Hatzidakis stated: “We always try to satisfy requests coming from various groups, to the extent that these requests do not put at risk the execution of the budget and the target set for the country and for the Greek economy as a whole.”
Last week healthcare workers also went on strike demanding higher wages.
Looking at the IMF building, Hatzidakis told Reuters, “Coming to this building, I always remember the previous decade, and I always remind myself that I shouldn’t allow Greece to come back to the previous decade but also to grow in a sustainable manner for the benefits of the Greeks.”
Source: tovima.com
Latest News
October 28: Traffic Regulations and Public Transport Adjustments
Road closures and transportation changes will be in effect across Athens and Piraeus until the National Day events conclude
Greek Finance Minister Wraps Up Trip to Washington D.C.
The Greek delegation included Council of Economic Experts president Michael G. Arghyrou and Public Debt Management Agency Director General Dimitris Tsakonas
ELSTAT: Construction Material Prices Remain High in Greece
According to recent data from the Hellenic Statistical Authority (ELSTAT), the General Index of Construction Material Prices for New Residential Buildings rose by 5.5%
Greek Economy Faces Pressing Challenges Amid Global Uncertainty
Major issues that are expected to intensify if not addressed, include the high current account deficit, the substantial investment gap, low productivity, and the question of long-term growth
Greece Expands Investigation into Profit Margin Cap Violations
The investigation into potential violations of Greece's profit margin cap now includes 26 major food and non-food companies as well as 9 supermarket chains
Inflation Drains Minimum Wage Gains in Greece, Prompting New Reform Plan
Calculations show that the real wage as of September 2024 is 693 euros, meaning the actual minimum wage has yet to reach 700 euros
Luxury Holiday Homes in Greece Surge in Demand
Trends regarding holiday homes in Greece, in recent years, are primarily driven by the significant demand of affluent clients who seek to buy more comfortable family homes
Majority of Greeks Over 50 Face Retirement Without Pensions
Most Greeks aged 50-74 do not receive any old age pension
SEV President to Call for Major Industry Investments and Clear Reforms
SEV’s president is also expected to emphasize the need for clear, streamlined licensing processes and structural issues that hinder the industry
US Government Says North Korea Sent Troops to Russia
North Korea has sent 3,000 troops to Russia for possible deployment in Ukraine, according to to US government official