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24/04/2025 | 18:07
Pierrakakis stresses Greece’s recovery at IMF panel; meeting with White House advisor Michael Kratsios
National Economy and Finance Kyriakos Pierrakakis referred to Greece’s difficult fiscal path and the ways in which its economic recovery has been achieved during a speech he gave at a panel at the International Monetary Fund’s Spring Meeting in Washington on Wednesday.
Entitled “Paths to Prosperity – Policies and Partnerships for Success”, the panel discussed Greece’s positive economic performance in a period of intense economic instability. This fact contrasts with the years of the economic crisis, when Greece was at the centre of the IMF General Meetings as a bad example and a factor of economic uncertainty.
Pierrakakis said it was a symbolic day, as 15 years ago Greece had become the recipient of the first rescue package and had begun its cooperation with the IMF. The minister recalled that it had been a very difficult decade for Greece, given that the country lost 24 points of GDP, suffered a huge economic contraction that sent unemployment soaring and lost an entire decade financially.
The picture began to change in 2019, Pierrakakis said, when the government implemented economic policies and reforms that began to produce results.
“ We have seen significant economic results. Just yesterday there was an announcement by Eurostat. Only six of the 27 EU member states have a budget surplus. Greece is among these six countries and our growth rate is higher than the EU average,” he stated. At this point, Pierrakakis noted that four of the six countries with a surplus had had programmes with the IMF in the last decade.
Continuing, he referred to the main pillars of the government’s policy but also to the discussion on how to manage financial surpluses. In this light, he emphasised the reduction of bad loans, structural reforms and the need for fiscal prudence, saying that the bill cannot be passed on to future generations, as was the case in the past.
Regarding structural reforms, he cited examples such as the dramatic increase in the number of digital transactions, the green light for the establishment of private universities, the reduction of administrative and bureaucratic obstacles, as well as the possibility of capitalising investments.
Using an analogy, the minister explained that in previous years, Greece always had the appropriate hardware but did not have the necessary software. As he explained, the country lacked the right institutional framework, the appropriate rules, along with the right mentality that would unleash its development potential in classic sectors, such as tourism, real estate and foreign direct investment, but also in non-obvious sectors where there is potential for development.
Finally, the minister referred to an article in the New York Times written by Thomas Friedman on the same day, 15 years ago, when Greece signed the first memorandum. At the end of this article, Thomas Friedman wrote that in the coming years he will not focus on the performance of Greek bonds but on the return of young Greeks.
“ ‘If you see them leaving the country, start selling. If you see them returning or staying, start buying.’ Greeks have started to return in recent years, especially because we managed to taking on the cost of these reforms early on. And right now, we are seeing the profits (of this effort),” the economy and finance minister said.
Meeting with White House advisor Michael Kratsios
While in Washington, Pierrakakis met Michael Kratsios, the U.S. President’s chief advisor on science and technology policy. The discussion focused on Greece’s economic progress, the potential for attracting American investment, and international developments in the field of Artificial Intelligence.
The discussion brought back to the fore the excellent cooperation that had already begun in 2020 in the context of digital transformation, when the two sides had developed a constructive dialogue to strengthen technological innovations.
The meeting confirmed the will of both sides to continue and further strengthen their cooperation, with the aim of deepening bilateral relations between Greece and the United States, both at the technological and investment levels.
“In 2020, in the context of our previous portfolios, we had excellent communication on issues of digital transformation. We will continue our excellent cooperation with the aim of deepening relations between Greece and the United States,” Pierrakakis said in a post on X after the meeting.
Source: ANA – MPA
