Remarkable durability showed in 2021 greek economymanaging to cover the losses caused by the pandemic last year, but also proceeding at the same time with reforms such as the digitization of the Greek state and the continuation of the transition to green growth.
He expressed this appreciation from his step 7th Delphi Economic Forum The Governor of the Bank of Greece (BoG), Giannis Stournaras, during a conversation with journalist Paschos Mandravelis, while expressing the belief that the reforms of previous years created a labor market very different and more dynamic than in the past.
Regarding the EU sanctions on Russia and the “freezing” of its foreign exchange reserves, the Governor of the Bank of Greece pointed out that once Europe decided to put democracy and its principles above all else, the decision to use this “Economic nuclear weapon”, he agrees. He spoke of a blockade of resources, which has been reused (for example, in Iran and Venezuela), but never at the expense of a major nuclear power such as Russia.
Regarding the inflation crisis, but also the attitude of banks towards inflation, Mr. Stournaras noted that “before the pandemic, European banks postponed to increase inflation. They made great efforts and we reached negative interest rates. The pandemic has created a number of restrictions on supply chains or factories.
The accumulated savings were converted into consumption, as a sign of excessive demand and rising prices. We had a series of shocks on the supply side. “But the biggest thing is now in Ukraine. This is a shock that is contributing to rising inflation.”
According to the BoG governor, finally, although there is no doubt that the dollar will continue to be the dominant currency even in the midst of adverse economic conditions, the euro now has the opportunity to strengthen. But to achieve this, the Eurozone must move to a higher degree of federalism.
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