P. Gentiloni on Greece’s exit from enhanced supervision: ‘The public debt crisis was a hard lesson’

“Thanks to the sacrifices and endurance of its people and the determination of the authorities, Greece is today closing a difficult chapter in its long and proud history,” Economy Commissioner Paolo Gentiloni said today, announcing the country’s exit from enhanced supervision .

“The country is exiting the regime of enhanced supervision, after four years, having successfully fulfilled most of its political commitments made at the Eurogroup. Greece has effectively implemented key reforms to strengthen its economy and public finances. its achievements are all the more commendable given that this period was marked by two serious external shocks: the COVID-19 pandemic and Russia’s invasion of Ukraine,” the Economy Commissioner said in his statement.

Paolo Gentiloni also emphasizes that the Commission will continue to stand by Greece in the next phase of its economic development and will work with it to implement the reforms and investments set out in the ambitious recovery and resilience plan.

“The end of enhanced supervision for Greece also marks the symbolic end of the most difficult period the euro area has experienced. The sovereign debt crisis that defined the early years of the last decade was a steep learning curve for our Union. The strong “Our collective response to the pandemic showed that Europe had learned the lessons of this crisis. We must show the same solidarity and unity as we navigate the turbulent waters our economies are now entering,” the Economy Commissioner’s statement concluded.

Asked by APE – MPE, “what are the lessons learned from the experience of the public debt crisis”, Paolo Gentiloni answered that the lessons that stand out are two: “First, in a crisis situation, decisions must be made quickly and in a spirit of solidarity. The sovereign debt crisis was a sharp turning point and a hard lesson for our Union: solutions were often found at unreasonably high costs, both social and economic. Second, given the interdependence of the euro area economies, a consistent and coherent policy mix, with prudent fiscal policies coupled with investment and reforms, and with cooperation between monetary and fiscal policies. Fortunately, I believe we have collectively learned these lessons, as shown by the EU’s response to the COVID-19 pandemic.” replied P. Gentiloni.

Source: AMPE