Greece is set to repay €5 billion ($5.3 billion) in bailout-era debt ahead of schedule in 2025, Prime Minister Kyriakos Mitsotakis announced at a banking conference in Athens on Monday. This decision is presented as a testament to the country’s fiscal recovery and commitment to maintaining financial discipline.
“This early repayment underscores our confidence in public finances and reflects our commitment to fiscal discipline,” Mitsotakis stated, highlighting the government’s efforts to stabilize the economy following a decade-long financial crisis that necessitated substantial borrowing from European Union partners and the International Monetary Fund.
While the government touts economic recovery, it faces increasing pressure from citizens grappling with a cost of living crisis that has diminished purchasing power. Despite the absence of a significant opposition challenge, the rising costs have affected the government’s approval ratings and sparked discontent among the populace.
In response to these challenges, Greece’s two main unions, representing both private and public sector workers, have called for a general strike on Wednesday. This strike is expected to disrupt transportation services, including island ferries, and affect public services across the country. A protest march is also planned in central Athens, reflecting widespread frustration over the government’s handling of economic issues.
The GSEE, Greece’s main private sector union, criticized the government for failing to implement effective measures to ensure workers can maintain dignified living conditions. GSEE chairman Yiannis Panagopoulos lamented, “The cost of living is sky-high and our salaries rock-bottom, while high housing costs have left young people in a tragic position.”
Despite these challenges, the European Union forecasts a 2.1% growth in Greece’s economy for 2024, with unemployment projected to continue its decline, currently sitting below 10%. Inflation is expected to stabilize at around 3% this year, indicating some positive economic trends amid ongoing public discontent.
As Greece navigates this complex landscape of recovery and rising living costs, the government’s early debt repayment serves as both a symbol of progress and a reminder of the ongoing struggles faced by many citizens.
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