After twelve years of reinforced surveillance imposed by the European Commission, Greece turns the page, “a historic day for Greece and the Greeks,” the Greek Prime Minister announced this Saturday in a speech to the nation.
In 2010, the Greek government, realizing that its coffers were empty, appealed to the EU, the European Central Bank and the International Monetary Fund. Since 2010, these creditors have put in place three 289 billion euro bailout plans that require Athens to take austerity measures aimed at improving the country’s public finances and putting money into the coffers. Pensions and salaries are reduced, taxes are increased, public procurement is frozen, the budgets of administrations, hospitals and all public bodies are cut.
Debt at 180% of GDP
In 2018 the third program ends, but the European Commission then launches a regimen of enhanced surveillance of the Greek economy to verify the implementation of the reforms undertaken and the continuation of privatizations. Athens also commits to maintaining a primary surplus (before debt service) of 3.5% of gross domestic product (GDP). “Greece today is a different Greece”, assured the Prime Minister.
“We have strong growth and a significant drop in unemployment of 3% since last year and 5% since 2019,” he added. The European Commission expects a growth of 4% this year while on average in the euro zone it should rise to 2.6%. But unemployment remains one of the highest in the euro zone, the minimum wage one of the lowest, and debt of 180% of GDP remains a burden on the country’s economy.
Source: BFM TV
