Greek economy needs “disciplined approach,” says central bank governor

In a candid revelation, central bank governor Yannis Stournaras admitted that he could finally “sleep at night without worrying about fiscal instability.”

He was referring to Greece’s fiscal turnaround, with his newfound confidence stemming from the country’s steadfast commitment to maintaining a primary surplus and implementing key reforms -- all needed to safeguard against economic uncertainty.

Speaking at a key

economic forum in Delphi, Mr. Stournaras praised the current course of Greece’s economy, saying that if the government persists in preserving a 2 percent primary surplus while executing necessary reforms, the nation’s economic future looks promising. This disciplined approach, according to Mr. Stournaras, is the bedrock for Greece’s continued stability and growth.

Still, the central bank governor was cautious of existing hurdles.

He pointed out a significant skills gap in the labor market and that the country had to tackle other serious problems to enhance its structural competitiveness and growth rates.

On the European front, Mr. Stournaras called for the creation of an EU fund modeled after the Recovery Fund established during the Covid pandemic to combat climate change.

“It is the elephant in the room that all countries have to deal with,” he said.

Drawing lessons from the past, Stournaras highlighted the positive economic impact of immigration during the 1990s. He suggested that immigration helped keep wages at reasonable levels, allowing Greece to meet the Maastricht criteria despite inflationary pressures.

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