Greece exits enhanced surveillance by the European Commission

After 12 years of enhanced surveillance imposed by the European Commission, Greece is turning a page, “a historic day for Greece and the Greeks”, announced the Greek Prime Minister on Saturday in an address to the nation. “A 12-year cycle that has brought pain to citizens, stagnated the economy, and divided society is closing,” Conservative Prime Minister Kyriakos Mitsotakis said on Saturday.

Today marks the last day of the enhanced economic surveillance of Greece.

Thanks to the determination and resilience of Greece and its people, the country can close this chapter, and look to the future with confidence.

The EU will always stand by your side. pic.twitter.com/hDnFd9dqB5

—Ursula von der Leyen (@vonderleyen) August 20, 2022

“A clear new horizon of growth, unity, prosperity is emerging for all,” he added. In 2010, the Greek government, realizing that its coffers were empty, appealed to the EU, the European Central Bank and the International Monetary Fund. Since 2010, three rescue plans of 289 billion euros have been put in place by these creditors who are demanding that Athens take austerity measures aimed at improving the country’s public finances and bringing money into the crates.

“The most difficult period that the euro zone has known”

Pensions and wages are reduced, taxes are increased, public hiring is frozen, the budgets of administrations, hospitals, and all public bodies are cut.

In 2018, the third program ends, but the European Commission then launches a regime of reinforced surveillance of the Greek economy to verify the implementation of the reforms taken and the continuation of privatizations. Athens also undertakes to maintain a primary surplus (before debt service) of 3.5% of gross domestic product (GDP).

“The end of the reinforced surveillance of Greece also marks the symbolic conclusion of the most difficult period that the euro zone has known,” European Commissioner for the Economy Paolo Gentiloni said in a statement on Saturday. “Our strong collective response to the (Covid-19) pandemic has shown that Europe has learned the lessons of this crisis,” he also said.

Unemployment and debt remain at a worrying level

“Today’s Greece is a different Greece,” assured the Prime Minister. “We have strong growth and a significant drop in unemployment of 3% since last year and 5% since 2019,” he also added. The European Commission expects growth of 4% this year while it should not exceed 2.6% on average in the euro zone.

Nevertheless, unemployment remains one of the highest in the euro zone, the minimum wage one of the lowest and the debt of 180% of GDP remains a burden on the country’s economy.