More than 6 out of 10 of its members Greek Economists Group claim that recovery investment class from Greece should take precedence over compensatory measures to address the consequences of accuracy where these two policy objectives conflict.

The restoration of the investment rating will symbolically mark one of the last steps in the long and difficult process of Greece’s exit from the crisis adventure of the previous decade and its return to the choir of normal developed economies.

At the same time, on a practical level, an upgrade of Greece’s credit rating past the investment grade milestone will reduce the cost of borrowing for the public and individuals, at least compared to other comparable countries, since the total cost of borrowing is certainly dependent on international interest rate trends. rates. A total of 25 Greek economists responded to the Group’s January question. Of these, 64% say restoring investment grade should take precedence over subsidy measures when the two policy goals conflict, while 16% disagree. 20% of respondents chose two options.

In their comments, which are fully available on the website of the Center for Liberal Studies, members of the Hellenic Panel of Economists note, on the one hand, that the restoration of the investment rating should be the unconditional priority of economic policy for this year. , with achieving a primary surplus being the minimum price Greece has to pay to bring down the cost of borrowing for the public and private sectors. It is also emphasized that bonus measures, being popular, especially in the pre-election period, are part of the symptomatic treatment of the consequences of the current emergency and do not contribute to correcting the pathologies of the economy.

Targeted Interventions

Thus, it is argued that any benefit policy this year should be directed more specifically at low incomes, as the restoration of investment grade will benefit all citizens at large.

On the other hand, it is pointed out that this year the government should continue to respond to the need for emergency scholarships, since if social cohesion is destroyed, the consequences will be much worse than delaying the restoration of investments. grade. Finally, it is interesting to note by several members of the Group, regardless of their position on the matter, that these two policy objectives are not inherently incompatible with each other, since the need to determine the ideal combination of fiscal austerity and social policy is a constant and fundamental parameter in the design and implementation of practical politicians.

* Mr. Giorgos Archondas is a member of the Scientific Council of the Center for Humanitarian Studies and the head of the Hellenic Group of Economists.

The Greek Economists Group is an initiative of the Center for Humanitarian Studies that aims to record and report on the voices of leading Greek women and Greek economists on critical economic policy issues. The panel is attended by 75 economists from 59 universities and institutions in 11 countries. For a detailed list of participants, their responses to monthly questions and explanatory comments, as well as answers to frequently asked questions about the Panel, please visit the Center for Humanitarian Studies website kefim.org.