Supervision of Greece, which lasted 12 years, was terminated. Most of the political promises made by the country to the eurozone have been fulfilled. Greece has carried out effective reforms and no longer needs increased supervision, said European Commissioner for Economics Paolo Gentiloni.
During the economic crisis of 2008, Greece quickly became entangled in gigantic debts. From 2010 to 2018, the country was effectively supported by other eurozone countries and the International Monetary Fund. To prevent bankruptcy, Greece received 290 billion euros of loans under three support programs.
However, the support was not free - international institutions imposed a strict austerity policy on Greece. In 10 years, the country's economy has shrunk by a quarter, while Greek household incomes have fallen by a third.
The financial situation of the country is still precarious. The Greeks have the highest public debt in the entire eurozone, the state's creditworthiness remains low. The interest rates at which loans are issued are higher than for Italy. Greeks are seriously affected by inflation.
The abolition of strict EU control over Greek finances does not mean a rapid increase in the income of the country's population. The minimum wage is still at €713 and many Greeks are struggling to make ends meet. However, this is an important milestone in the development of the country.
Publication Date: 05.09.2022
