The governor of the Bank of Greece said that the country's GDP will be boosted by 1.9 pct each year from the use of the 30.2 billion euros of EU funds earmarked for Greece.
Net revenues from the state budget amounted to 14.1bn euros, a 1.34bn shortfall (8.7 percentage points as compared to the 2020 budget projection) and that is due to the impact of the lockdown and subsequent issues.
Certain political forces must understand at long last the role of the Central Bank, the degree of independence from political power that it enjoys, and to whom it must offer an accounting.
Yannis Stournaras is in constant contact with the ECB in Frankfurt as part of an effort to make sure 10bn euros are available to prop up Greek banks.
Apparently alluding to Mitsotakis’ stated hope of persuading creditors to lower the primary surplus target, he said that Greece needs more fiscal space in order to implement structural reforms and achieve a higher growth rate.
The warnings that the Bank of Greece issues due to its institutional role should be viewed as necessary, and not as hostile acts as the government viewed them over the last four years.
The central banker’s assessment reminds one that the economy has not yet turned a page and that it has not been shielded from dangers.
It is irrational in the current conditions of stagnation and continuing crisis for public investment to be constantly dropping.