The governance of Greece by Alexis Tsipras and SYRIZA contained strong populist elements, according to Yannis Stournaras. The Bank of Greece governor referenced populism twice in his interview with “Corriere della Sera.” First, when discussing the six months from SYRIZA’s election victory to the July 2015 referendum, commenting that “I had emphasized to him (Alexis Tsipras) that this delay would cost the country €100 million. It’s a fact that when populist parties come to power, generally speaking, they don’t govern well and fall. However, they cause damage, and this damage must be communicated, resulting in losses.” These damages weren’t mitigated by the eventual acceptance of terms by the then-prime minister, as Yannis Stournaras emphasized that “it was correct that Mr. Tsipras accepted the terms, but this should have happened six months earlier.”
The second reference was to highlight what the New Democracy government doesn’t do. For the Bank of Greece governor, political stability is a priority. He emphasized: “The government and Parliament supporting necessary measures require a rational approach. Without stability, it’s difficult to achieve. Today, we have stability with the Mitsotakis government and less populism.”
Yannis Stournaras: “There are wounds, but we’ve recovered faster than predicted”
Yannis Stournaras inevitably faced questions about the Greek economy’s condition, which internationally impresses. He noted that wounds still exist, but objective data shows improvement: “We’ve recovered from the crisis much faster and better than initial forecasts. However, wounds remain. There’s still much poverty that must be addressed. Investments increase annually, yet remain below the European average. Per capita income is rising, but hasn’t yet reached pre-crisis levels. Nevertheless, significant GDP growth has been recorded in recent years, at rates double those of the Eurozone.”
Additionally, he was asked for advice to the rest of Europe. He responded: “You cannot lead a country with large deficits. Today we have a primary surplus of 3.6%. It’s a responsibility to future generations.”
Furthermore, he emphasized that Greece’s economic miracle was “the most ambitious fiscal transformation ever recorded in a developed economy.” He then explained: “We implemented very harsh measures due to the crisis. In short, we applied the right formulas concerning fiscal and structural reforms. We transformed the fiscal deficit from 15% to surplus and reduced public debt. In return, we received a generous international financial assistance package, which we repaid immediately. Initially, we focused on the tax system, with parallel spending reductions, which we later adjusted to a 50-50 scale.”
