The Minister of Finance defended the government’s strategy of early repayment of public debt, stating that “we will not pass the debt on to our children. We are not going to do that.”
Speaking at the committee session, he explained that “for every €1 billion of early debt repayment, we gain €30 million. We have already repaid €26.5 billion, which brings €800 million in gains. There are another €19 billion in repayments, and in this way we balance the risk.” He added that Greece would have been in a very difficult position in 2032 due to a concentration of maturing obligations. “The 2032 risk no longer exists,” Mr. Pierrakakis said, adding: “This policy we are implementing is a mature and consistent policy that honors the obligation not to pass debt to the next generation. Our generation inherited the debt of previous ones. We should not pass it on to our children either, and we will not.”
At the same time, responding to opposition criticism regarding bank fees, the minister reminded that the government has recently taken initiatives. “If we need to intervene again, we will do so, but we are not of the view that we should interfere with banks just to send a political message to society, because that has been shown to work against society,” he noted.
Addressing PASOK and its decision to vote “present” on the renewal of Mr. Stournaras’ term—despite his being a finance minister in the previous ND–PASOK coalition government—he commented: “PASOK’s ‘present’ does not reflect the value of the governor, but rather PASOK’s own hesitation.”
Earlier, the main opposition rapporteur Paris Koukoulopoulos explained his party’s vote, saying: “Mr. Stournaras’ contribution to saving the country through fundamental choices is positively assessed by PASOK. We have no doubt that the Bank of Greece is in capable hands. We do not have a problem, but we have a matter of principle.”
It is noted that the renewal of Mr. Stournaras’ term received a positive opinion from the committee majority, with New Democracy voting in favor, PASOK and the Communist Party of Greece (KKE) voting “present,” and other parties voting against.
The central banker, in response to MPs’ questions, also referred to the disastrous first half of 2015, engaging in a tense exchange with Zoe Konstantopoulou.
Stournaras said: “We managed to succeed when everything was overshadowed by fear and oppression. We saved citizens’ bank deposits. That was a miracle… the liquidity crisis occurred in the first half of 2015.”
Konstantopoulou responded: “You had announced it.”
Stournaras replied: “What did I announce? Varoufakis?”
The governor also announced a regulation for a cap on consumer loan repayment: “A regulation will come. All countries do this. They set a limit on repayment as a percentage of the principal,” he said.
Responding to opposition criticism about high bank profitability, he noted: “Profitability has returned to normal after a 15-year period of losses. We have just emerged from intensive care. There are no excessive profits or capital.”
Stournaras added: “International tensions do not allow complacency.”
Pierrakakis stated: “The next decade will be judged by growth, the credibility of choices, and the strength of each country in Europe.”
Earlier, in his introductory remarks, Mr. Stournaras referred to risks for the Greek economy from rising geopolitical uncertainty, stressing that “no complacency is allowed.”
He said growth prospects remain positive, but international developments and instability in the Middle East “are expected to moderate growth momentum for 2026.”
He projected that “economic activity will increase by 1.9% in 2026 and inflation will be at 3.1%.” He added that risks are mainly on the downside for growth and mainly on the upside for inflation, due to geopolitical tensions and the war in the Middle East and Iran.
“The duration and intensity of the conflict will largely determine economic prospects at the local level. However, the Greek economy has greater capacity to absorb external shocks,” he said.
He noted that conflicts in the Strait of Hormuz increase raw material costs and operating expenses. He also said uncertainty and higher financing costs affect investment sentiment and can lead to delays in business decisions, while higher inflation reduces household disposable income. Prolongation of the conflict, he warned, could negatively affect the quality of banks’ loan portfolios.
However, he emphasized that the Greek economy has recovered and regained credibility, becoming a positive international example. “Progress is significant. But complacency is not allowed. The Greek economy still faces critical challenges: persistent inflation and low productivity compared to the eurozone,” he said.
During the session, Mr. Pierrakakis also intervened, recalling the critical battles Mr. Stournaras fought for Greece’s stay in the euro area and for the stability of the financial system.
“Memory is essential in politics; if we remember what we went through, we can understand what has been achieved. Today Greece borrows under conditions that would have been unthinkable, not taken for granted,” he said.
He added that non-performing loans have been reduced from 48% to 3.3%, stressing that there is no complacency.
He noted that the Greek economy still needs greater credit expansion and more financing for innovation, investment, and extroversion. “The goal is no longer only the stability of the banking system, but its ability to more dynamically support the country’s new productive model and the growth we will need in the next decade,” he said.
Closing his remarks, he stated: “Greece of crisis now belongs to the past. We have not forgotten what happened. We learned from it. And the next decade will be judged not only by economic growth, but also by the credibility of choices and the strength of each country within Europe. Greece must play a leading role in this new era.”
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