BoG governor Stournaras stresses need to conclude second program review

Bank of Greece governor Yiannis Stournaras reiterated on Wednesday the need to conclude the second program review as a necessary condition for economic recovery, during a speech at an event of the Wharton Club of Greece in Athens, titled “Greece and the Eurozone: challenges and outlook”.

The central banker said Greece must also implement unswervingly the structural reforms outlined in the new program, noting that a special emphasis must be given to lifting obstacles still facing privatizations which have already been approved and promoting the privatization program, as well as improving its management.

He also urged for greater wage flexibility, a strengthening of competition and a reduction of excessive regulations on prices and wages in some so-called “closed” professions (eg engineers, lawyers, etc.) and sectors of network infrastructure.

At the same time, he said the social state must create a protective net for those who are mostly affected by the economic adjustment. “Flexibility and security (flexicurity) must keep pace,” he said.