Greece is poised to make a significant early repayment of 5 billion euros ($5.3 billion) on its bailout-era debt in 2025, according to Prime Minister Kyriakos Mitsotakis. This decision reflects Greece’s improving fiscal position, though the country continues to face challenges related to the rising cost of living.
Prime Minister Kyriakos Mitsotakis announced the early debt repayment at a banking conference in Athens, framing it as a testament to the country’s financial recovery after a prolonged economic crisis. For over a decade, Greece grappled with severe financial instability, necessitating substantial borrowing from EU partners and the International Monetary Fund to stabilize its economy.
Greek financial authorities aim to further alleviate debt through primary surpluses and strategic loan repayments, alongside efforts to combat tax evasion. This fiscal strategy signifies a commitment to maintaining financial discipline.
Despite these positive developments, the Greek government is contending with public discontent over the high cost of living, which has eroded consumer purchasing power and adversely affected approval ratings. The center-right government, which secured a second term in 2023, is under scrutiny for its handling of economic pressures.
Labor unions in both the private and public sectors are voicing their frustration, planning a general strike to protest the government’s perceived inaction on improving living conditions. The main private sector union characterizes the government’s measures as insufficient to provide dignified living conditions for workers, highlighting concerns over low wages and high housing costs.
Projections for Greece’s economy indicate a growth rate of 2.1% in 2024, with expectations of continued moderate growth in the subsequent years. Unemployment is set to decrease further, currently standing below 10%, and inflation is forecasted to be around 3% this year.
While Greece is making strides in reducing its debt burden, the country must address the pressing issue of living costs to maintain public confidence. The government’s economic policies will be crucial in balancing fiscal recovery with addressing the needs of its citizens.
Source: News4jax
