Greek Prime Minister Kyriakos Mitsotakis on Saturday, August 20, welcomed his country’s official withdrawal from the European Union’s external financial surveillance system – the so-called EU enhanced surveillance of the economy, which has been in place for 12 years.
August 20, 2022 is “a historic day for Greece and all Greeks,” Mitsotakis said on state television channel ERT. Greece’s release from tightened EU supervision since August 20 was approved not only by the finance ministers of eurozone countries, but also by EU Economy Commissioner Paolo Gentiloni.
Greece will remain under surveillance for the duration of the loans, as will other EU states – Ireland, Spain, Cyprus and Portugal – which have received financial assistance.
In the context of the COVID-19 pandemic and the Russian invasion of Ukraine
Brussels greatly appreciated the efforts of the Greek people and their government to ensure economic growth and increase the country’s competitiveness. “Today Greece closes a difficult chapter in its long and glorious history,” said Gentiloni. As he noted, Greece’s successes are all the more commendable because they were achieved in a crisis due to the COVID-19 pandemic and Russia’s invasion of Ukraine.
Kyriakos Mitsotakis (file photo)
For his part, Mitsotakis stressed that even without EU oversight, the mistakes that led to a serious financial crisis in Greece in recent years should not be repeated. On the one hand, there will be salary increases and tax cuts, on the other hand, this should not hamper efforts to maintain financial stability, warned the Greek prime minister.
Severe financial crisis and gradual recovery from it
Greece faced a severe financial crisis that started in 2010 with a debt crisis, and as a result, under pressure from its creditors, it was forced to introduce austerity measures. The Greeks lost about 25% of their income in the process.
In August 2018, Greece successfully completed its third external macro-financial assistance programme. And now, as Greek Finance Minister Christos Saikouras noted the day before, the country is returning to European standards and is no longer an exception in the eurozone.
Source: DW
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