After twelve years, Greece is no longer under the financial supervision of the EU since Saturday. This is the end of a painful period for Greece that has led to economic stagnation and a division in society, Prime Minister Kyriakos Mitsotakis said in Athens. He now promised his compatriots a new beginning “full of growth, unity and prosperity”.
During the financial and debt crisis, the euro partners and the International Monetary Fund (IMF) had saved Greece from national bankruptcy several times since 2010 with loans totaling almost 289 billion euros. The third loan program for the heavily indebted country ended in August 2018. Greece left the European Stability Mechanism (ESM), but remained under close observation.
The debt crisis and the strict austerity measures imposed by international creditors resulted in drastic losses for many Greeks. The conditions for the bailout loans were massive cuts in pensions and salaries, the monthly minimum wage fell to less than 600 euros at the time. There were also tax increases and privatizations. The Greek economy shrank by more than 25 percent, unemployment rose to almost 28 percent and skilled workers left the country in droves.
“Today’s Greece is a different Greece,” said Mitsotakis. August 20, 2022 is a “historic day for Greece and all Greeks,” Mitsotakis said on state television. Greece has recently recorded strong economic growth and a significant drop in unemployment.
Mitsotakis emphasized that even without the controls, the mistakes that had led to the severe financial crisis in Greece in recent years should by no means be repeated. There will be wage increases and tax cuts, but these should not undermine efforts to balance finances.
In addition to the finance ministers of the euro countries, the responsible EU Commissioner Paolo Gentiloni had approved the release from the Board of Trustees from August 20 in the past few days.
