In two in-depth pieces on the Greek economy and the successful early repayment of its debt, the German-based weekly newspaper Ziet and RND (RedaktionsNetzwerk Deutschland) highlight why and how the small Mediterranean country achieved this impressive feat.
Entitled “The Economic Situation of Greece: What No One Expected,” the long piece in the weekly newspaper Zeit, penned by Felix Keßler and Zacharias Zacharakis, starts by providing some background on the Greek economy and the debt crisis and the seemingly impossible task the country was faced with, mired in huge debt and structural problems. “For years, being Greece’s Finance Minister seemed like the worst government position in all of Europe: managing billions in debt, begging banks and foreign partners for funds to keep hospitals and schools running while dealing with striking workers demanding higher wages. And on top of that, they faced the austerity-driven Germans breathing down their necks,” the authors note.
But what a reversal of fate! The once European cash-strapped “beggars” who traveled to the capitals of the continent to avoid default and finance their mere survival are now outperforming their EU debtors. As the article underlines, while Germany’s economy stagnates, Greece is projected to achieve over 2% growth this year. The EU anticipates a fiscal surplus of 3% of GDP by year-end, with a structural surplus continuing through 2025. Greece is no longer known for its deficits but for its sound fiscal policies.
Prime Minister Kyriakos Mitsotakis has even announced an early repayment of €5 billion in public debt in early 2024. The authors note that Greece has shifted from being Europe’s “problem child” to its “model student” within a decade. The transformation is attributed to factors such as the reduction of undeclared work through digitized payment systems (boosting tax revenues), tourism growth (stimulating agriculture and construction), and rising foreign investment.
Despite this Herculean comeback, the article warns that lingering challenges remain. University of Athens economics professor Dimitris Katsikas notes that while Greece is “on the right path overall,” not all citizens benefit equally. Rising rents, compounded by Eurozone inflation, strain households, leading to recent general strikes.
Meanwhile, a second article by RND (RedaktionsNetzwerk Deutschland) entitled “Should Have Been Repaid by 2028: Athens Prepares Early Repayment of €8 Billion in Eurozone Bailout Loans” highlights the fact that the Greek government was reducing its debt faster than planned. “Greece remains the EU’s most indebted country—for now.”
In the report from Athens, authored by journalist Ger Höhler, the article focuses on Greece’s early repayment of nearly €8 billion from its 2010 bailout loans. This move saves the country €135 million in interest and is expected to reduce its debt to 154% of GDP by year-end.
Under the subheading “Stronger Economic Growth Than the Rest of the EU,” the article cites Prime Minister Kyriakos Mitsotakis, who emphasizes that the Greek economy has a solid footing. Even after the recent repayment, Finance Minister Kostis Hatzidakis will still manage a liquidity reserve of €30 billion—equivalent to half of last year’s tax revenues.
The report explains that Greece’s public debt is considered sustainable by the European Commission and the IMF, primarily due to its structure. About three-quarters of Greece’s national debt is held by public creditors like the European Stability Mechanism (ESM), with permanently low interest rates and the longest debt maturity in the EU.
