Economic Recovery

The decade began with PM George Papandreou’s six-minute nationally televised speech from the small island of Katelorizo and it is winding up (with the proud victory of New Democracy.

Investment remains stuck at its lowest level and the economy is not taking off. It is unable to transcend the cycle and culture of pervasive pessimism, as if something is binding and immobilising it.

In the economy, careful steps and even more so prudence are needed, especially since the international environment of late has been especially unstable.

'The excessive reliance of fiscal consolidation on taxation creates disincentives for work and investment, while also leading to a growing informal economy,' the Interim Report on Monetary Policy states.