‘There is no room for reset 13th and 14th salary » The Bank of Greece Governor appreciated Giannis Stournaras Speaking at an event of Cycle.

He appeared worried about the impact of the trade war, noting “we do not know what is dawning us tomorrow”, and estimated that in 2025, with two more reductions, the ECB’s main interest rate would be reduced to 2%.

As “markets are now, there are now two more interest rates reductions in 2025 and recently they thought the ECB would make a total of three interest rates reductions.”

The Bank of Greece went down to the downward rates of the Greek economy for 2025, lowering the bar to rise to GDP this year to 2.3% from 2.5%.

As Mr Stournaras explained, speaking at the conference organized by the ideas cycle, this review was imperative after the revision of the European Central Bank’s forecasts for the development of the eurozone.

For the Greek economy the BoG commander recommended to the new Minister of National Economy, Kyriakos Pierrakakisto continue the policy of fiscal responsibility thanks to which, he said, international ratings agencies upgraded the Greek economy to the investment level. Asked about the tax cuts planned by the government, it conveyed the Bank of Greece’s preference to tax cuts and insurance contributions but not VAT, as he said, in order not to further strengthen consumption.

Mr Stournaras was clearly opposed to the reinstatement of the 13th and 14th salaries to the State and respectively in pensions, clarifying that there is no budgetary room for that.

He placed particular emphasis on increasing investment to cover the investment public of the Greek economy. As he even said in the coming years, it is expected that around 50 billion euros from the EU (from the Recovery Fund and Structural Funds) are expected to enter the Greek economy.

Specifically for the recovery fund, he noted that “we are not going badly in absorption” as Greece is in the 6th place among EU countries.