Yannis Stournaras, Governor of the Bank of Greece, expressed optimism about the country’s economic prospects, stating that Greece’s growth trajectory will continue even after the completion of the EU’s Recovery and Resilience Facility. Speaking at the Economist’s 30th Annual Government Roundtable – Progress in an Age of Upheaval | Geopolitics – Growth – Technology, he rejected forecasts suggesting a slowdown post-Recovery Fund, affirming his confidence that Greece’s growth momentum can be sustained.
Middle East Tensions and Economic Uncertainty
Stournaras highlighted ongoing developments in the Middle East as a significant source of uncertainty for the European economy. While recent de-escalation efforts had raised positive expectations—both for growth and inflation trends across the eurozone—he noted that renewed conflict has re-introduced volatility into financial markets. A clear example, he said, was the rapid rise in oil prices from around $70 to $80 per barrel within a single week.
Reforms and Fiscal Discipline Are Key
The governor stressed the need for accelerated implementation of proposals outlined in the Draghi and Letta reports on EU competitiveness and economic governance. He reiterated the importance of completing the banking union, which he believes would help curb deposit outflows from Europe.
Stournaras also emphasized that credibility in economic policy and fiscal discipline remain essential foundations for macroeconomic stability. Controlling inflation, he added, does not come at the expense of growth—in fact, it can support it when paired with coherent, consistent economic policies.