ATHENS, Greece – Greece has announced plans to repay 5 billion euros (approximately $5.3 billion) in debt from the bailout period ahead of schedule in 2025. Prime Minister Kyriakos Mitsotakis made this declaration during a banking conference in Athens, emphasizing that this decision highlights the nation’s economic recovery.
“This action reflects our confidence in our financial management and demonstrates our dedication to maintaining fiscal discipline,” Mitsotakis stated.
Officials from the Finance Ministry have outlined strategies to reduce the nation’s debt, including efforts to generate primary budget surpluses, repay loans more effectively, and tackle tax evasion aggressively.
After successfully navigating a decade-long financial crisis that led to extensive financial assistance from European Union nations and the International Monetary Fund, Greece is now on a path of recovery. However, despite favorable economic indicators, the center-right government, which secured a second term in 2023, faces significant challenges due to a rising cost of living that has diminished the disposable income of many Greek citizens.
The escalating living expenses have impacted the government’s popularity, despite facing little opposition in parliament. In response to the growing discontent, Greece’s principal private and public sector unions have organized a general strike scheduled for Wednesday, which will halt operations of island ferries and disrupt various forms of public transport and services.
Additionally, there will be a protest march taking place in central Athens on Wednesday morning. The GSEE, the leading private sector union, criticized the government on Monday for allegedly ignoring the need for substantial measures to guarantee adequate living conditions for workers.
“The expenses of everyday life are excessively high, while our wages remain insufficient, and escalating housing costs have placed many young individuals in dire straits,” stated GSEE leader Yiannis Panagopoulos.
According to forecasts from the European Union, Greece’s economy is anticipated to grow by 2.1% in 2024, with projections pointing towards a stable growth trajectory over the next couple of years. Unemployment, now below 10%, is expected to continue its downward trend, while inflation for the year is estimated to be around 3%.