The recovery of the Greek economy<\/b>, reforms<\/b>, banking stability and challenges for Europe<\/b> according to Giannis Stournaras<\/b>.<\/p>\n
At a period of intense international challenges and economic upheaval<\/b> in Europe<\/b>, Bank of Greece Governor Giannis Stournaras<\/b> discusses in an interview with the course of the Greek economy<\/b> from crisis <\/b>to stabilisation and growth<\/b>, highlighting the crucial role of fiscal discipline<\/b>, structural reforms<\/b> and the recovery of the banking system as fundamental factors<\/b> for the restoration of confidence and investment momentum<\/b>, while at the same time focusing on the new challenges<\/b> facing the European Union<\/b> in an environment of inflationary pressures<\/b>, geopolitical instability and the need for deeper economic integration<\/b>.<\/p>\n
The Italian newspaper Avvenire<\/b> and journalist Marta Ottaviani interviewed Bank of Greece Governor Yannis Stournaras<\/b>, who explained how fiscal discipline<\/b>, structural reforms<\/b> and the reorganisation of the banking system<\/b> were the three “pillars<\/b>” that helped the Greek economy to recover<\/b>.<\/p>\nThe interview
<\/h3>\n
Mr. Governor, how does the Greek economy today compare to ten years ago, when the crisis was at its peak?<\/i><\/b><\/p>\n
Greece has undergone a radical transformation. After a long period of crisis and
adjustment, its economy has returned to a growth trajectory above the
average for the euro area: Greek GDP is estimated to have grown by 2.1% in 2025,
compared to around 1.4% in the euro area. Growth is supported by investment and
consumption, but also by the contribution of exports, in particular tourism and services.
There is also a gradual shift towards higher value-added activities. The labour market has improved: unemployment has fallen below 10% and the labour force participation rate has increased. This result is based
on stronger fundamentals, namely the strengthening of public
financial sustainability, the strengthening of the banking system and the increase in
competitiveness.<\/p>\n
What factors made the transition to recovery possible?<\/i><\/b>
<\/b><\/p>\n
The path has been based on three pillars: fiscal discipline, structural
reforms and the recovery of the banking system. With the programmes that began
to be implemented in 2010, the large primary deficit has been turned into a surplus,
while the current account deficit has narrowed significantly. The
reforms have affected pensions, health, the labour market and public
administration, with beneficial effects on competitiveness in the long term. The banking system has been restructured through mergers and targeted interventions,
resulting in a reduction in the number of banks and strengthening their resilience. The
social costs have been high, but macroeconomic stability and
confidence have been restored.<\/p>\n
What policies have restored the country’s credibility?<\/i><\/b><\/p>\n
Credibility has been restored thanks to continued reforms and a clear
European orientation. The role of the ECB has been decisive in terms of
securing liquidity and financial stability. Debt restructuring in 2012 improved debt sustainability, while NPLs have been reduced significantly in subsequent years. Exceptional measures, such as restrictions on cash withdrawals
and capital movements, also helped to maintain stability in the most
critical phases.<\/p>\n
What are the lessons that Europe can learn from the Greek
experience?<\/i><\/b><\/p>\n
The first is that political stability and institutional credibility are of fundamental
importance. Without internal consensus, there is a risk that reforms will fail.
The second is that imbalances need to be addressed early: nominal
convergence alone is not enough without structural interventions. Third, the quality of
reforms is important: a balance between fiscal discipline
and growth is needed. Finally, the banking system needs continuous supervision and crisis management
must be managed through common European instruments and timely interventions.<\/p>\n
How do you currently assess European economic policy?<\/i><\/b><\/p>\n
Europe is in a complex phase, characterised by inflation,
geopolitical tensions and weak growth. Energy shocks have made
the environment more difficult, triggering inflationary pressures. The ECB remains
focused on price stability, aiming to bring inflation back
to 2% over the medium term. On the fiscal side, there is a need to support the most
vulnerable households and businesses, but avoiding measures of a horizontal or prolonged
duration that could further fuel inflation.<\/p>\n
Where should the European Union act more decisively
<\/b><\/p>\n
We need a qualitative leap. Integrating the single market, especially in
services and digital technology, is a priority to increase
productivity and potential growth. At the same time, it is important to strengthen the banking union and accelerate the construction of a genuine European capital market capable of mobilising private savings and channelling them towards strategic investment. If this is not done, Europe will continue to face a financing gap
compared to other major economies.<\/p>\n
A second issue is industrial policy. Energy, advanced technologies,
artificial intelligence and defence require common strategies and coordination between
member states. The current fragmentation limits the effectiveness of interventions and increases costs. It is also necessary to reduce the internal barriers that still exist, to simplify the regulatory framework and to facilitate the growth of European businesses, a prerequisite for them to be globally competitive.<\/p>\n
The energy issue also remains a challenge. The crisis of recent years has shown how vulnerable Europe is: coordinated investment in infrastructure, interconnections and diversification of energy sources is needed, as well as an acceleration of the exploitation of renewable sources. This is not only an environmental objective, but also a question of economic security. Finally, it is necessary to strengthen common tools for crisis management. The experience of the pandemic has shown that joint initiatives, such as European investment programmes, can have a significant impact. The
integration of these tools into Europe’s institutional architecture would help to
stabilize the economy and support long-term growth.<\/p>\n
How will the international environment affect Europe?<\/i><\/b><\/p>\n<\/p>\n
Volatility will remain high. The EU will need to strengthen its resilience
by investing in energy security, defence and technology. At the same time, it is
crucial to maintain internal cohesion, avoid political
fragmentation and focus on strengthening integration.<\/p>\n
What role can Greece play in this scenario?<\/i><\/b>
<\/b><\/p>\n
Greece can contribute as a reliable partner, thanks to its reform path
and the stability it has achieved. Its geographical position makes it a bridge between
Europe, the Mediterranean and the Balkans. Moreover, the strengthening of energy infrastructure
contributes to European energy security, while its role in managing
migration flows remains important for the stability of the Union.<\/p>\n
.<\/p>\n","protected":false},"excerpt":{"rendered":"
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