German Economic Research Institute: Greek economy on dynamic growth course

Α Decrease font Enlarge font
German Economic Research Institute: Greek economy on dynamic growth course2017 will be a year of political, economic and social uncertainty because nobody knows what will evolve from the elections in the EU countries

"2017 will be a year of political, economic and social uncertainty because nobody knows what will evolve from the elections in the EU countries. However, I am optimistic for Europe and for Greece, Italy and Spain because a large number of reforms have been implemented", said president of the German Economic Research Institute Marcel Fratzcher to Athens Macedonian News Agency adding that the first results are already visible.

The Greek economy is recovering and Greece is developing again. The growth rate is low as it is in Italy but there are serious reasons indicating that the growth can be accelerated in the next year and afterwards. My hope is this acceleration to be faster than what it is now" he said.

"Greece is a wonderful country which I deeply admire and in a number of issues is very rich" he added and explained "In culture, in quality of life and innovative minds. Greece has made progress in the reforms but be we can't fool ourselves that they will be completed in 2018 with the conclusion of the third programme but in 10-15 years because Greece's major problem is the state mechanism. Greece must have a state that will operate, where all the citizens will pay their taxes and will allow investors to take a licence without lengthy bureaucratic procedures.

In the short term Greece's public finances should be consolidated in order in one to one and a half year to set them under control, to have a perspective in order to not depend on is lenders any more. Referring to the Christmas bonus to the low pensioners and the freezing of negotiations for the debt relief, Fratzcher said "This disagreement is ridiculous. It is indicative of the real problem, the lack of confidence from both sides. I imagine that the lenders would not disagree if it was agreed openly and with transparency".

Primary surplus

The main issue according to Fratzcher is "if the 3,5 pct primary surplus is realistic" underlining that "if Greece grows by 2 to 2,5 percent it is", adding however that "the problem is how we will have this growth rate when there is the debt burden". He had proposed "one and half year ago the interests to be linked with the growth" because if there is no growth Greece will not pay but if there is growth it will be able to pay the interests.

In Brussels and Berlin listened to this proposal but they said that "it is politically difficult to be implemented". From an economic point of view this compromise is feasible because what happens right now with the interests is useless. These interests are linked with the growth in Europe, with the market and not with Greece's growth rate.

"In my opinion this is the mistake and Greece should, according to our proposal, to get rid of this burden in these difficult times. It should pay part of the interests and only in times when growth is recorded in the country", he said.

This is a form of relief for as long Greece is having difficulties but when its economy records dynamic growth, it should pay 1/5 or 1/4 or its growth to interests to its lenders, he claimed noting that "this way there will not be any arguments with the lenders as the one with this small Christmas bonus which destroy the trust and are bad for all. Both sides should be smarter in such matters". 

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

Tornos
  1. 27/02 18:46

    Greek FM: EU should begin North Macedonia and Albania accession talks

  2. 27/02 18:41

    Major cruise lines eye Piraeus in Greece as their key port of call

  3. 27/02 18:34

    Truffle hunting commences in Greek site of Meteora during March

  4. 27/02 18:28

    Aristotle University of Thessaloniki to promote Greek studies abroad

  5. 27/02 18:08

    Tokyo 2020: Details of olympic flame ceremonies in Greece unveiled

  6. 27/02 17:27

    Greece wins double distinction at 7th Historic Hotels of Europe awards

  7. 27/02 16:56

    Patras municipal council meets on cancellation of Carnival due to COVID19

  8. 27/02 16:56

    Coronavirus and migration top agenda in cabinet meeting chaired by Greek PM

  9. 27/02 16:01

    Three confirmed COVID19 cases in Greece cause cancellation of carnival events

  10. 27/02 14:05

    SETE on COVID19: Greek tourism has the maturity to cope

  11. 27/02 12:02

    Greek-American third-grader launches company to save sea turtles

  12. 27/02 10:51

    Greek-Americans take part in the 22nd Thessaloniki Documentary Festival

  13. 26/02 20:20

    Renovated Omonia Square close to opening in central Athens

  14. 26/02 19:35

    11 threatened Greek grapevine varieties to be saved

  15. 26/02 19:29

    Minister interview: France will support Greece and Cyprus against Turkey

  16. 26/02 18:30

    Latest Greek high court ruling in favor of Hellas Gold mining investment

  17. 26/02 18:20

    Greek Alternative Tourism and Gastronomy Workshop 2020 in 4 European cities

  18. 26/02 18:17

    Prime Minister to migrants not qualifying for asylum: Don't come to Greece

  19. 26/02 17:45

    Next EUMed7 conference be organized in Athens during May 2020

  20. 26/02 16:16

    First case of COVID19 recorded in Northern Greece remains in good health

  21. 26/02 14:44

    Campaign against overworking of donkeys on Greek island of Santorini

  22. 26/02 11:59

    Popular Greek comic actor Kostas Voutsas passes at the age of 88

  23. 26/02 00:43

    Greek government signs cooperation deal with UEFA and FIFA in Athens

  24. 26/02 00:36

    Greek luxury travel firm launches contest on International Women’s Day

  25. 26/02 00:17

    Rich program of Carnival events all over Athens

  26. 25/02 20:25

    International buyers boost home rates in northern Greek city of Thessaloniki

  27. 25/02 20:12

    Cosco-controlled Greek port of Piraeus announces higher turnover and profits

  28. 25/02 20:07

    General strike on northern Aegean Region islands in Greece on Wednesday

  29. 25/02 20:03

    Survey: Bread prices in Greece second lowest in eurozone

  30. 25/02 20:00

    Blood sample of man hospitalised in Greek port of Patras negative for coronavirus

  31. 25/02 19:56

    InvestCyprus creates specialized unit to help attain 2030 tourist targets

  32. 25/02 19:56

    Ambassador in Athens: Qatar lives and breathes for 2022

  33. 25/02 19:05

    Bank of Greece head: Seven priorities for sustained economic growth

  34. 25/02 19:03

    LPC chief: Greece top in EU for recycling industrial lubricant oils

  35. 25/02 18:05

    Greek minority in Albania against government plan to seize properties in Himara

  36. 25/02 17:54

    Eurogroup president to take part in next month's 5th Delphi forum in Greece

  37. 25/02 16:55

    1,000 guests at Tenerife hotel quarantined after coronavirus diagnosis

  38. 25/02 16:13

    Greek government to pass act on measures to contain potential spread of coronavirus

  39. 25/02 15:36

    Three Greek firms awarded projects for construction of closed refugee camps

  40. 25/02 14:40

    Good news for Greek tourism: Warm weather may kill the new coronavirus

  41. 25/02 13:19

    Tyrini, Cheesfare week kicks off in Greece

  42. 25/02 13:17

    Greek Finance Minister to meet with hotel sector representatives

  43. 25/02 11:58

    National Museum of Contemporary Art opens in Athens on Friday

  44. 25/02 01:35

    Venice Carnival canceled and towns locked down after COVID-19 outbreak

  45. 25/02 01:30

    Greek Health Minister: All measures have been taken to protect public health

  46. 25/02 01:11

    Greek Health Ministry issues basic tips against COVID-19 as a precaution

  47. 25/02 01:03

    Greek tennis champion Tsitsipas wins second open title in Provence

  48. 25/02 00:44

    Aegean: No plan to cancel flights from Greece to Italy due to virus

  49. 25/02 00:31

    Tokyo 2020 Olympic flame to pass by historic landmarks across Greece

  50. 25/02 00:03

    Passenger traffic in Greek airports grows 5.4% in January 2020

  51. 24/02 22:41

    Compromise between an ancient necropolis and an ultra modern Cultural Center reached in Athens

  52. 24/02 21:47

    TrainOSE increases passenger capacity in view of Patras carnival in Greece

  53. 24/02 20:27

    Acclaimed Greek poet Kiki Dimoula passes away at 89

  54. 24/02 19:58

    Financial crisis drove Greece’s rents down but rebound makes them soar

  55. 24/02 17:19

    IFT 2020: Greece remains a top tourist destination for Serbs

  56. 23/02 19:21

    US students at Lafayette College to resume Ancient Greek program in Athens

  57. 23/02 17:03

    Greek Foreign Ministry voices support to Turkey and Iran over earthquake

  58. 23/02 16:41

    Greek Health Ministry to hold meeting on coronavirus precautions

  59. 23/02 16:35

    Region of Attica Governor wants to clear Athens from poster pollution

  60. 23/02 16:22

    Athens Science Festival to take place in Technopolis between April 1-5

  61. 23/02 16:17

    IATA: Coronavirus may slash $29 billion from Airlines’ revenue globally

  62. 23/02 16:04

    Greeks from “Diamond Princess” cruiseship test negative for coronavirus

  63. 23/02 15:59

    Initiative to rid central Monastiraki Square in Athens of plastics

  64. 23/02 15:52

    Washington Post: Greece should be the keeper of the Elgin Marbles

  65. 23/02 13:43

    Whistleblower in Novartis case to testify before Greek Parliament

  66. 23/02 11:30

    Minister: Building migration centers on Greek islets 'not a government plan'

  67. 23/02 00:51

    Yachting report: Flisvos Marina in Athens among the best in the world (video)

  68. 22/02 15:46

    Greek FM discusses renewable energy with Danish counterpart Kofod

  69. 22/02 15:29

    Promotion of renewable energy sources for electricity production in Greece

  70. 22/02 15:25

    Seven bidders for Thessaloniki port pier extension project in northern Greece

  71. 22/02 15:20

    Infographic: Europe’s most passenger-friendly train stations

  72. 22/02 14:52

    DEPA infrastructure privatization attracts 9 international investors in Greece

  73. 22/02 14:48

    Greek climate activist spreads message by cycling around the globe

  74. 22/02 14:32

    Greek champion wins gold at 2020 World Cup Gymnastics in Melbourne

  75. 22/02 13:43

    Grrek PM on EU summit: Some insisted we should do more with fewer resources

  76. 22/02 12:00

    ReGeneration Greece: Five years of supporting young people

  77. 21/02 19:49

    Greek Orthodox Archdiocese in United Nations event on homelessness

  78. 21/02 17:46

    Greek Foreign Minister Dendias visits the Danish capital Copenhagen

  79. 21/02 17:35

    Infographic: China is the planet's manufacturing superpower

  80. 21/02 17:26

    Greek Shipping Minister meets with EU Commissioner for Transport

  81. 21/02 17:06

    European court gives Greece green light for migrant detention centers

  82. 21/02 16:58

    Greek export performance achieves new historical record during 2019

  83. 21/02 16:24

    Greece's comics festival, Comicdom Con Athens, launched on April 10

  84. 21/02 16:18

    SEV proposes measures to reverse brain drain in Greece

  85. 21/02 16:12

    Bible of digital transformation to be presented in Greece until end of March

  86. 21/02 16:01

    Victoria Beckham’s Vogue Greece cover draws global media attention

  87. 21/02 15:51

    Total value of Greek-Chinese trade soars to record €4.5 billion

  88. 21/02 15:48

    Greece plays critical role in European Union ecology app program

  89. 21/02 15:44

    ECB net interest income on SMP holdings of Greek bonds at €94 million

  90. 21/02 12:37

    Connecticut University to create museum of ancient Greek city-state of Sparta

  91. 21/02 10:23

    Greek PM from Brussels: We cannot do more with less

  92. 21/02 02:16

    Carnival season peaks in Greece

  93. 21/02 02:09

    First smart-hotel to open in northern Greek city of Thessaloniki

  94. 21/02 01:56

    Foreign Ministry: Greece's foreign policy always serves international law

  95. 21/02 01:51

    St. Petersburg College cooperates with Greece’s University of the Aegean

  96. 21/02 01:35

    Condé Nast Traveler: Ftelia in Mykonos named Best Beach Club in the World for 2020

  97. 21/02 01:09

    Greek-American Chamber of Commerce hails exemption of local products from tariffs

  98. 20/02 23:00

    Hellenic Society of Constantinople to organize Annual Gala in LA

  99. 20/02 22:28

    Greek PM: More funding needed for climate change and border control

  100. 20/02 21:45

    Parliamentary Budget Office: Greek economy on positive track in Q4 2019