Greece's Path to Fiscal Stability Amid Wage Demands

Greek Finance Minister Kostis Hatzidakis emphasizes fiscal prudence to maintain economic growth despite higher wage demands by striking teachers and ferry workers. Greece aims to reduce its debt-to-GDP ratio while fostering a business-friendly environment. Hatzidakis highlights the importance of maintaining fiscal discipline as a foundation for economic credibility.

Greek Finance Minister Kostis Hatzidakis has stressed the importance of fiscal prudence to preserve the country's economic growth trajectory. Despite increased wage demands from striking teachers and ferry workers, Hatzidakis insists that Greece must not jeopardize its declining debt-to-GDP ratio.

Speaking in Washington during International Monetary Fund and World Bank meetings, Hatzidakis outlined that accommodating wage increases hinges on their impact on the broader economy. Greece, experiencing strong growth compared to the euro zone, forecasts a 2.2% growth rate for 2024.

The finance ministry plans an early repayment of $8 billion in bilateral debt, aiming to reduce the debt-to-GDP ratio significantly by 2028. This, Hatzidakis argues, is fundamental to maintaining international credibility and preventing a return to past fiscal crises.

(With inputs from agencies.)