The heads of institutions in Athens at the 28th Annual Government Economist Roundtable called on the government to continue reforms, especially in the areas of justice and the economy. At the same time, they called for increased spending on health and education, which lag behind other countries. However, they all agreed that Greece’s debt is on a good path and they think this can continue, but Greece is not changing course.
SOE Chief Michalis Argyrounoted, among other things, that Greece has made great strides in recent years, which can be seen in the volume of investments that have arrived in the country. “Greece made very significant progress in 2020 in terms of its fiscal affairs. We have very high growth rates both compared to previous years and compared to our European Union counterparts. We have had stable and healthy surpluses in recent years. Based on the data, we have the highest growth rate in the last five years, with the volume of investment increasing by 40% in the last five years,” he said.
As he pointed out Julia Lendvai, Head of Mission for Greece at the European Commission, It seems that the direction of the Greek economy is a motivation for the investments that have been made in recent years. However, he noted that there should now be greater boldness on the part of the government to advance reforms, especially in the speed of delivery of justice and also in the financial sector.
He also emphasized the need to create new permanent jobs that could replace fixed-term contracts. However, he kept his distance from what is happening in the international environment, reminding that these should be taken seriously.
Joong Shik Kang, IMF Mission Chief for Greecenoted that GDP in Greece has increased by more than 16% and that fiscal adjustment has played an important role in this context. The main objective, he stressed, is “to achieve high growth in a sustainable manner. The objective is to have fiscally friendly growth.” He also said that “our assessment is that fiscal adjustment will not be derailed.” He placed particular emphasis on the need to increase spending on health and education, stating that “health and education spending is lower than its counterparts and should be increased or at least remain at the same levels.”
For his part, Paolo Fioretti, head of the mission for Greece at the European Stability Mechanism, said that “a virtuous cycle has begun to bear fruit over the past year and, under certain conditions, can contribute decisively to reducing public debt” and, among other things, he said: “The role of banks in this virtuous circle is decisive. In addition to growth, Greece has been consistent in its fiscal discipline. The economy is growing and banks are performing very well. This unlocks growth in the coming years.”