Εconomy and Development Minister Dimitris Papadimitriou on Sunday outlined the economic development prospects in a period of high public debt during his speech at the 2nd Delphi Economic Forum.
The Minister referred in particular to the failed policies followed in Greece aiming at reducing high debt through high primary surpluses that would reduce the debt / GDP ratio and emphasis on austerity.
“We all know how unsuccessful this option was as the debt, after seven years of austerity and a significant haircut (PSI), increased by almost 50 pct of GDP,” said Papadimitriou. “Many now recognize that high primary surpluses are catastrophic and consider that they must be drastically reduced compared with the 3.5 pct target demanded by creditors.”
Moreover, he said that the government’s aim for debt relief is rather important both for the sustainability and the growth prospects of the economy. Short-term measures for debt relief have already been announced while long-term measures that will support the country’s development course will also be taken.
The great challenge of the Greek economy, noted the minister, is the sustainable development by attracting productive investments, stimulating extrovert entrepreneurship and supporting employment, in order to produce quality products and services with high added value, which will have a positive impact on the economy and society.