Despite dire warnings from the European Commission, the ECB, and the markets about both the rising cost of Greek government debt and the cost of insuring it, Papaconstantinou argues that Greece’s fiscal and economic problems are not calamitous.
The newly elected Greek government is faced with an economy in a recession, a grave fiscal situation, and deep-rooted structural problems, with a public deficit estimated at 12.7% of GDP and debt above 110% of GDP. On top of this, Greek statistics and Greek policies now suffer from a lack of credibility as a consequence of the previous government’s reporting a fiscal deficit only half as high as we now know to be the case. However, Papaconstantinou makes the case that as the new government in Athens pushes for economic and budgetary change, skeptics should suspend their disbelief.
Papaconstantinou is the finance minister of the new Greek government.
Opinion summaries provided by Opinion Source, an organization with which Safe Democracy is associated