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German finance minister praises Greek reforms, says must continue
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ATHENS (Reuters) -German Finance Minister Christian Lindner praised Greece’s progress in implementing reforms, saying during a trip to Athens on Tuesday that the latest economic data and budget figures were strong.
ATHENS (Reuters) -German Finance Minister Christian Lindner praised Greece’s progress in implementing reforms, saying during a trip to Athens on Tuesday that the latest economic data and budget figures were strong.
The government must, however, continue its efforts, said Lindner, adding that Greek debt levels must be reduced.
Speaking at a news conference with Lindner, Greek Finance Minister Christos Staikouras said he expects euro zone finance ministers to confirm the country’s exit from the bloc’s enhanced surveillance framework later this week.
“A difficult chapter for the country that began in 2010 will close and Greece will return to European normality,” Staikouras said.
Since 2018 and the end of its financial assistance programme, Greek economic developments and policy have been monitored under the euro zone’s so-called enhanced surveillance framework.
Lindner welcomed the expected announcement as a positive signal and said the move shows that very difficult political decisions made more than a decade ago proved to be correct.
The move is just the beginning of a normalisation of Greece’s finances, he said, adding that there were still major challenges.
“There is, of course, a very high debt total for the Greek state which, due to its structure, is at least not a cause for concern in the short term,” Lindner said, also pointing to wider concerns about rising inflation in the European Union.
(Reporting by Christian Kraemer and George GeorgiopoulosWriting by Madeline Chambers and Miranda Murray, Editing by William Maclean)
Debt sustainability refers to a country's ability to manage its debt without requiring debt relief or accumulating further debt, ensuring that it can meet its current and future financial obligations.
Monetary policy is the process by which a central bank manages the supply of money, interest rates, and inflation to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
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