BoG insists on fiscal prudence
During his speech at the Greek-German Chamber on Thursday, Bank of Greece Governor Yannis Stournaras sent a message of fiscal prudence and coordination of political forces in this direction ahead of the elections.
He called for a return to permanent primary surpluses close to 2% of gross domestic product after 2023, support measures against the pandemic and energy crisis to remain targeted and temporary, and the effective use of available European resources so that debt sustainability is not put at risk.
He also emphasized, “The absolute orientation of economic and especially fiscal policy toward the acquisition of investment grade for Greek government bonds should be a non-negotiable national goal.”
Addressing the issue of the elections, he argued, “Cooperation and understanding of the political forces is required in order to implement the basic commitments of economic policy and to preserve what the Greek economy has achieved in the last decade.”
With a primary surplus of 2% of GDP, the interest on the public debt can be fully covered; Stournaras said that this way the risks will be controlled, despite the increase in Greek bond yields.
