Christos Staikouras: Eight central priorities and six goals from now on

The eight central priorities in economic policy, as well as the six goals set from now on, were developed by the Minister of Finance, Christos Staikouras, in his speech at the 7th Congress of EENE.

According to the minister, the eight pillars are as follows:

1. Return the real economy to normal operating rates, with targeted support to households and businesses. The support measures will be withdrawn gradually and not abruptly, in order to “fasten” their full withdrawal at the end of the health crisis.

2. Supporting society from the effects of the international energy crisis and curbing inflationary pressures. First, € 1.1 billion has been given to deal with the effects and as long as it lasts, the State will be close to households and businesses.

3. Continue the implementation of a prudent fiscal policy, in the direction of further reduction of taxes and insurance contributions. As in the increase of wealth and its fair distribution.

4. Continue the implementation of a smart and insightful publishing strategy, in order to maintain strong cash reserves. Cash and cash equivalents amount to € 39 billion and can deal with any market turmoil and crises. The IMF will be repaid in early 2022, while 5.2 billion euros will be paid from bilateral loans with eurozone member states.

5. Strengthen liquidity in the real economy by implementing policies such as reducing “red” loans in banks’ portfolios, utilizing the 12.7 billion-euro Recovery Fund loan portfolio, and the new regulatory framework private debt.

6. Implementation of structural changes (tax incentives for increase of electronic transactions, for business growth, etc.), promotion of privatizations and utilization of public property.

7. Active participation of the country, as has been the case for the last 2.5 years, in the structure of a new European economic architecture. “We want fiscal stability, but also flexibility that will depend on the cycle of the economy,” he said.

8. Rational utilization of the available European funds, with the “peak” the Recovery and Resilience Fund and the new NSRF, totaling approximately 80 billion euros by 2027.

The six goals for economic policy are:

1. Maintaining high rates of economic growth from this year. GDP growth of at least 6.9% in 2021 and at least 4.5% in 2022.

2. Sustainable growth by improving the composition of GDP with a significant increase in investment and exports. The growth rate of real investments is estimated at around 11% for 2021 and 23% for 2022.

3. Exit of the country from the status of Enhanced Supervision within 2022. From January, the discussions with the competent European institutions will begin.

4. Achieving a single-digit percentage of non-performing loans in the banks’ portfolios by 2022. At least two systemic banks will have a single-digit percentage from this year.

5. Fiscal adjustment in 2022 and achieving realistic primary surpluses from 2023.

6. Acquisition of investment grade in 2023.