The primary task of the next government should be carrying out the necessary reforms as well as returning to fiscal discipline to get rid of the “junk status” investment-grade, the governor of the Bank of Greece, Yannis Stournaras, said ahead of the 21 May national elections.
Just a few days before the crucial national elections, Stournaras “reminded” Greek politicians of their responsibilities regarding the country’s economy.
He recommended fiscal discipline, underlining that the measures announced by political parties before the elections should not worsen competitiveness, either short-term or long-term.
In an interview with the Financial Times earlier this week, Stournaras said, “We think that 2023 is the year will get the investment grade”, after 12 years of relegation to junk status.
Speaking at a conference in Athens, he said the investment-grade upgrade would have multiplier effects that would be “enormous for the entire economy for all citizens”.
Stournara’s intervention comes following the EU Commission’s new fiscal rules and gradual return to the Stability and Growth Pact, suspended due to the pandemic.
“The times of extensive, expansive fiscal policies are therefore coming to an end. That’s an important recommendation for our national budgetary policy,” German Finance Minister Christian Lindner told journalists on Tuesday.
Last but not least, Stournaras stressed that implementing the national recovery plan would improve structural competitiveness and increase the total productivity of the economy.
(Sarantis Michalopoulos | EURACTIV.com)
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