Stournaras in FAZ: These are the conditions for the recovery of the investment grade

Today’s Frankfurter Allgemeine Zeitung hosts an interview with the Governor of the Bank of Greece, Yannis Stournaras, which praises the Greek economist for his pro-European stance throughout time.

“In one year, Yannis Stournaras completes a decade as a member of the Board of Directors of the European Central Bank (ECB). […] No one should feel as much satisfaction and retrospective confirmation of participation in this decision-making body as Stournaras. Because Greece is on a steady path of recovery, despite the pandemic and the war in Ukraine. After the recent electoral victory of the government of Prime Minister Mitsotakis, the country has a good chance of maintaining a stable political framework in the coming years, which will allow for new reforms”, the article points out.

“He didn’t think for a second about Grexit”

During the tumultuous 2012-2015 period, when Greece came one step away from exiting the euro, the Frankfurt paper reports, Stournaras “didn’t think for a second about Grexit. In those dramatic months of 2015, when leftist politician Alexis Tsipras and his finance minister Yanis Varoufakis bet on a dangerous confrontation with European governments, Stournaras had a lot to endure. […] Today, the loans have significantly increased the country’s debt level, but the financing terms are such that Greece will hardly be burdened by rising interest rates for several years. Due to tough austerity measures, reforms, foreign investment and the help of the Recovery Fund, the country today shows above-average growth rates, with a simultaneous decrease in unemployment.

In relation to the legends about the controversies during decision-making within the framework of the ECB, Stournaras emphasizes that there is more unity in the Governing Council of the ECB than many media claim, but admits that “Economics is not an exact science, it is more an art, a social science. That’s why there are differences of opinion.”

Finally, FAZ reports that “Stournaras, one of the leading economists of his country, is beyond all doubt a convinced European”. […] From the current Greek government, Stournaras asks that the conditions be created for Greece’s return to the investment stage, “through a disciplined spending policy and decisive reforms. The even today highest rate of tax evasion in Europe must be combated, as well as the lack of competition in the markets for goods and services.”