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Gentiloni: High growth in Greece brings debt reduction

Gentiloni_Reuters-1

Greece’s debt is on a declining course due to the fact that there has been significant growth in the economy, European Commissioner for Economic and Financial Affairs Paolo Gentiloni stated in an interview with Capital.gr on Friday.

He underlined that “in the case of Greece, we have a clear example of the fact that growth is necessary to keep the debt on a downward and declining course.” He added, “It is very difficult to imagine how a country with a very high debt could reduce it without growth in its economy.”

Gentiloni estimated that Greece’s economy is on an upward course, while stating that growth for 2022 will be at a very good level. He noted that “the numbers in Greece at the moment are interesting: You know that the economy is now [returning to] pre-pandemic levels.”

The commissioner stated that the discussion on ending Greece’s enhanced surveillance will be held at the next Eurogroup, while he noted that the decision will not be related to the general discussion on the new Stability Pact.

Regarding the increase in the minimum wage in the countries of the South, such as Greece, Portugal and Spain, and the effects that such a move may have on the resurgence of inflation, the European commissioner stated that “it is understandable that governments are reacting and trying to find appropriate ways to mitigate these effects. At the same time, we know that the impact of secondary inflation could be significant. Therefore, the decisions that each government takes must, of course, take into account this dimension as well.”