BoG governor notes “a gradual convergence of Greek political forces on necessary policies”

Greece’s production model needs to change, Bank of Greece governor Yannis Stournaras said in his address to Hellenic American Union.

Stournaras focused on reforms that improve competitiveness, on investments and entrepreneurship, and on reforms in public administration and the so-called triangle of knowledge – education, research and development and innovation.

Despite the mistakes and backtracking, the significant and societal price of the crisis, Greece has achieved marked improvement in the last seven years, he said, in adjusting the public finance and trade imbalances and in applying a strict reform program.

Speaking of reforms, the central bank governor said that reforms have long-term benefits but their cost is immediate, which explains why they were never implemented despite their legislation. He also noted that although the benefits affect most people, the few that stand to lose immediately put up a forceful resistance in public discourse, while the many who stand to benefit do not speak up with the same passion.

Despite that, he sees a change in old mentalities. “We are experiencing the gradual convergence of our country’s political forces in terms of needed policies,” he noted.