It is the prelude to a long-awaited new beginning: the EU is giving Greece financial independence. After strict austerity measures and tax increases during the debt crisis, the prime minister is now promising his country "growth, unity and prosperity."
After 12 years, Greece is no longer under EU financial supervision. 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. Greece has recently recorded strong economic growth and a significant drop in unemployment. EU Economic Commissioner Paolo Gentiloni said the end of financial supervision over Greece was also "the symbolic conclusion of the most difficult time the euro zone has ever known". The strong joint response to the corona pandemic has shown "that Europe has learned the lessons from this crisis". Solidarity and unity are also important in the current economic crisis.
