BoG Governor Again Cautions Over Excessive Tax Breaks, Debt

Greece’s influential central banker, Bank of Greece (BoG) Governor Yannis Stournaras, has once again warned publicly against the enacting of too many tax breaks in the country, while also cautioning about the size of the country’s public debt.

He was speaking last week at the annual OT Forum in Athens.

The head of the independent Bank of Greece (BoG), who was finance minister through most of the second bailout period roughly a decade ago, also insisted that economic reforms must continue.

On a brighter note, Stournaras underlined what he called the “swift progress” achieved in the Greek economy in the last few years, and particularly the restoration of the country’s investment grade rating by successive international ratings firms. He also appeared optimistic that inflation, which has been rampant over the last two years, will finally fall.

Greek consumers have been hit with near-consecutive monthly increases in the inflation rate, with skyrocketing energy prices in the wake of the Russian invasion of Ukraine succeeded by often double-digit hikes in food prices.

The cost of living in Greece and much of Europe also shot up in the wake of the pandemic-related disruption of supply lines and production.