Athens, Greece – Bank of Greece Governor Yannis Stournaras asserted that the Bank of Greece played a pivotal role in preventing a Grexit (Greek exit from the eurozone) during the 2015 financial crisis. Speaking at a Kathimerini conference on the future of democracy and Greece’s reform prospects, Stournaras emphasized the crucial role of institutional independence.
“If it wasn’t for the Bank of Greece, we might not be in the euro after the adventure of 2015,” stated Stournaras during the panel discussion titled “In the next 50 years, is democracy safe? Is Greece reformable?” He highlighted the significance of having institutions that serve as a counterweight to central authority, contributing to the stability of the country.
Stournaras stressed the need for trust in institutions to enhance the quality of democracy. Despite the enduring economic challenges faced by Greece, he pointed out that the country maintains a relatively high position in the UN human development index.
Addressing the issue of public debt, Stournaras mentioned that Greece received a substantial financial aid package of €289 billion at a low-interest rate after the 2010 fear of default. Looking ahead, he expressed optimism about the country’s fiscal future, stating that with a sustained 2% primary surplus and ongoing reforms over the next five decades, the public debt could decrease to 60% of the GDP.
“We owe it to the next generations,” emphasized Stournaras, highlighting the importance of fiscal responsibility and long-term economic planning.
