Greek Finance Minister Kostis Hatzidakis emphasized the government’s commitment to fiscal prudence to secure the country’s growth trajectory, despite facing demands for higher wages from striking teachers and ferry workers. Hatzidakis stressed the importance of maintaining a stable debt-to-GDP ratio while meeting wage demands cautiously to avoid jeopardizing economic progress.
Greece, with one of the highest growth rates in Europe, aims for 2.2% growth in 2024, outperforming the overall 0.8% IMF growth forecast for the eurozone. The finance ministry plans early debt repayments to reduce the debt-to-GDP ratio from 162% to 149% by 2025 and further to 133.4% by 2028.
The medium-term fiscal plan targets a debt reduction to 114.8% of GDP by 2038, requiring a blend of fiscal prudence and a business-friendly approach. Hatzidakis highlighted the need for dialogue with creditors and EU partners to ensure sustainable economic growth and prevent a return to past financial crises.
Reflecting on past challenges at IMF headquarters, Hatzidakis underlined the patriotic duty of sustaining Greece’s economic growth for the benefit of its citizens, emphasizing the significance of maintaining fiscal discipline for long-term prosperity. [Reuters]