Stournaras urges deeper EU integration for future resilience

Governor Stournaras reflected on the Economic and Financial Committee's pivotal role, recalling his own membership in its precursor, the Monetary Committee, from 1994 to 2000.

He emphasized the committee's objective to promote policy coordination and facilitate the internal market, laying the groundwork for the single currency and the euro area's formation in 1999.

Greece's accession in 2001 brought substantial benefits, including eliminated exchange-rate risk, strengthened monetary credibility, and access to liquid financial markets.

However, a decade later, Greece faced a severe sovereign debt crisis due to expansionary fiscal policies, excessive wage growth, and lax financial conditions.

This necessitated three economic adjustment programmes from 2010 to 2018 to address structural weaknesses.

The EFC proved instrumental in navigating the Greek sovereign debt crisis, preparing critical decisions that averted a euro area exit.

This period spurred significant EU-level initiatives, including the Greek Loan Facility, EFSF, ESM, SSM, SRM, and a reinforced Stability and Growth Pact, which collectively bolstered the Union's resilience against future shocks.

Concurrently, Greece underwent a profound transformation, shifting from a 10.1% primary fiscal deficit in 2009 to a 4% surplus by 2018.

The country also saw its current account deficit decline, its banking sector restructured, and crucial structural reforms implemented, ultimately restoring investor confidence and fostering sustained economic growth.