Die Welt on Greece: “The Sudden Power of the Formerly Bankrupt State”

The German newspaper writes about investment grade and the challenges of the economy

13 years ago, the “bankrupt Greeks” almost blew up the eurozone. The Greek economy is currently growing faster than almost any other economy in Europe, and at the same time the debt is declining. How did the state do it and what is its price?

With these words the German newspaper Die Welt begins, A lengthy greeting to the Greek economy And he continues: “A few years ago, Greece narrowly escaped bankruptcy thanks to international donors. With its financial problems, the eurozone almost exploded. Today, on the other hand, Greece is growing faster than almost any other country in the monetary union. Unemployment is falling, “Public debt and bad loans on bank balance sheets are shrinking. International rating agencies can soon declare the country highly creditworthy – which will sound like a seal of approval from the financial markets for what has been achieved so far.”

Warnings

However, economists warn.

As the post notes, this positive development “should not be overestimated.”

The Greek economy continues to suffer from problems that were partly responsible for the crisis in the past. Public debt remains high, and austerity programs have inflicted new economic and social wounds that could take decades to heal.

Airbnb parameter

The German newspaper also focuses on the new economic problems that have arisen: “A new phenomenon is the skyrocketing rents in the big cities, Athens and Thessaloniki, which have reached sky-high levels due to foreign real estate investors and AirBnB brokers. At the same time, other cost of living is also increasing: Inflation in Greece in recent months is among the highest in Europe.

Moreover, it is also a fact that there is an increase in investments in real estate and tourism, as the report cites in detail the opinions of experts and economists, who agree that this recovery, in order to be stable and long-term, requires a combination of factors: from strong institutions to the growth of overall productivity. “The first steps in this direction have already been taken: industrial companies are investing again dynamically in Greece. Abroad, importance is also given to how quickly and pragmatically the government of Athens has responded to the pandemic (…) Almost all administrative procedures can now be carried out online (…) The country is also on the radar of high-tech companies from other countries.”

source: extra time