Tag: Greece

Greek economy surges after decade of pain

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A decade ago, Greece was in the throes of a devastating debt crisis marked by years of austerity, hardship and unrest. Now, officials and investors say 2024 could be the year its rebound is finally complete.

The Greek economy is forecast to grow nearly 3% this year, approaching its pre-crisis size of 2009 and far outpacing the euro zone average of 0.8%.

Borrowing costs have plummeted to below those of Italy, and banks bailed out during the crisis are set to be fully privatised for the first time in decades – a move some of the country’s largest investors see as a final sign of normality.

“With (the state’s participation) out of the way, that’s a landmark,” said Wim-Hein Pals of asset manager Robeco, which recently bought shares in Greek banks.

“The Greek economy is in good shape to benefit from further growth going forward.”

The turnaround in Greece, whose debt crisis threatened to cause the demise of the whole euro zone, is stark – on paper at least. Now the country faces a novel problem: being held back by stagnation in the same euro zone giants that once imposed strict reforms on its economy.

After years shut off from international markets, Greece returned to investment grade credit rating in 2023. When the state’s bailout fund last month sold its stake in Piraeus Bank (BOPr.AT), opens new tab, one of the country’s largest, the sale was oversubscribed eight times.

Challenges remain, however. Falling birthrates and labour shortages threaten the long-term outlook, and the spread of climate-related disasters like wildfires and floods have strained government finances.

Many ordinary Greeks reeling from the crisis say they see little difference as economists say the wider benefits of the rebound will take time. To ensure long-term growth, the country needs to diversify beyond the typical economic drivers of tourism, real estate and services.

More than half of foreign direct investment into Greece, which totalled about 7.5 billion euros ($7.98 billion) in 2022, comes from northern European countries like France and Germany that are struggling with weak growth.

Greek exports, such as agricultural goods, fuel and pharmaceutical products – two thirds of which head to the EU – fell almost 9% last year. Economic growth slowed to 2% in 2023, partly a result of its lagging neighbours.

“The lower expectations for growth in Europe affect Greece in two main ways. Through pressure on exports… and through the higher cost of money,” said Nikos Vettas, head of economic think tank IOBE.

FINANCES REVIVE

Decades of rampant tax evasion and overspending caught up with Greece in 2009, when it went into recession and the government revealed a giant hole in its finances that sent shockwaves across global markets.

By 2015, it had signed three bailouts with the euro zone and the International Monetary Fund worth 280 billion euros. In return it agreed to austerity measures that slashed public sector wages and pensions, and triggered years of violent protests.

Since Greece emerged from the bailout in 2018 it has revived its banking system and has relied solely on debt markets for its borrowing needs. In 2022, it paid off the IMF two years ahead of schedule.

Calm is largely restored. In Athens’ central Syntagma Square, where 10 years ago protesters would hurl petrol bombs at riot police in protest at austerity measures, today buskers entertain tourists who sit in the shade of its sour orange trees.

Visits to the Acropolis, Greece’s best known ancient site, hit 3.8 million in 2023, nearly four times the number seen at the height of the crisis.

INEQUALITY REMAINS

For many Greeks though, economic recovery has not translated into improved living standards.

Unemployment remains above 10%, the second highest in the EU after Spain, and GDP per capita in purchasing power is among the lowest in the bloc, Eurostat data show. The average monthly salary of 1,175 euros is 20% lower than 15 years ago, according to labour ministry figures.

Greece needs to develop sectors where investments are more long term, said Vettas from IOBE, “like infrastructure projects and manufacturing.”

Unions held a general strike on Wednesday in which trains, buses, ships and taxis were halted and hundreds took to the streets calling for higher wages. Some people haven’t recovered from losing everything when the economy tanked.

Periklis Fryganas took out a bank loan in 2009 to expand his motorcycle repair shop in Athens, only for the crisis to reduce his turnover by 90% over the next six years. He closed the shop in 2020 and recently lost an apartment he shared with his unemployed wife and three sons after using it as collateral for the loan.

“The crisis broke a lot of people and I was one of them,” Fryganas, 61, said. “Things are getting better only for the ‘rich ones’, all the others are lοsing.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Greece passes legislation to introduce same-sex marriage

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Greek lawmakers approved landmark legislation on Thursday to introduce same-sex civil marriage and establish equal parental rights for same-sex couples in the face of opposition from the Orthodox Church.

The new law “provides everyone with the right to civil marriage along with the obligations that come with it” and safeguards the rights of children “regardless of the form of the family,” Greek Prime Minister Kyriakos Mitsotakis said ahead of the vote.

Although a number of EU countries has legalized same-sex marriage, Greece is the first majority Orthodox Christian country to approve such a bill. Opponents to the law said that existing measures introduced in 2015 to allow same-sex civil partnerships were sufficient but that argument was rejected by the majority of lawmakers.

Greece’s parliament voted 176 to 76, out of the 254 who voted in the 300-seat chamber, to extend equal marriage and automatic parental rights to same-sex couples, measures that will also allow them to adopt children. This will allow both parents to have guardianship over their joint children, something that is currently extended to the birth parent.

With the new legislation, children will now be able to inherit from their non-biological parent. What the bill does not do is allow male same-sex couples in Greece to have children via surrogacy. That will be reserved only for women who are unable to give birth.

After winning a second term in a landslide victory in June last year, Mitsotakis promised to legalize same-sex marriage, part of his pledge to modernize the country. Including Greece, 16 European Union member states out of 27 now recognize same-sex marriage.

Mitsotakis had to rely on support from four center-left and leftist opposition parties to pass the law after some members of his center-right New Democracy party either abstained or voted against the move.

The influential Church of Greece strongly opposed the legislation, arguing that it represents a threat for the traditional family. Protesters opposed to the new law marched in Athens on Sunday but the turnout was relatively small.

“The reform makes the lives of lots of our fellow citizens much better, without taking away anything from the lives of the many,” Mitsotakis said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Now, Greece may issue temporary visas to boost tourism, but for only travellers from this country

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Greece plans to make it easier for Turkish citizens to visit some of the Aegean islands for a limited period of time by granting them a temporary visa, people familiar with the matter said.

The initiative, which would revive an earlier procedure, may be announced during the visit by Turkish President Recep Tayyip Erdogan to Athens on Thursday for the High-Level Cooperation Council, people familiar with the move said, on the condition of anonymity. The European Commission has approved Athens’ decision to grant this temporary visa, one of them added.

“There is an open discussion, which is going very well, with the European Commission,” on the matter, Greece’s Migration minister Dimitris Kairidis said in a ERT TV interview Monday. “It’s not a matter of agreement with Turkey. It is our decision in cooperation with the European Commission, because we belong to Schengen,” the minister said, referring to the bloc’s border-control-free travel zone.

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Reviving the temporary visa measure would come as a boost to the tourism sector in the Greek islands and encourage economic activity between the two countries. It also shows that Turkey and Greece are gradually leaving behind them the period of heightened tension that brought them close to war in 2020.

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Relations between the Greek Prime Minister Kyriakos Mitsotakis and Erdogan have eased since July, as the two have met twice and have agreed to try and maintain a calmer relationship despite the differences they have in a number of important issues, such as the delimitation of maritime borders. They agreed to revive the High-Level Cooperation Council during their meeting in July.

The council, which includes a series of meetings between ministers, is an initiative aiming at addressing various issues in Turkish-Greek relations. It started in 2010, but its last session was in 2016.

In an attempt to further control migration flows toward Greece, the neighboring countries have also agreed to appoint a Greek coastguard official in Turkey’s Izmir and a Turkish official in the Greek island of Lesvos, Kairidis also said.

Also read: What is the dispute over Parthenon Sculptures between UK and Greece?

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Greece to repay more euro zone bailout loans ahead of schedule

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Greece will next month repay ahead of schedule 5.3 billion euros ($5.8 billion) of loans owed to euro zone countries under its first bailout, and hopes to repeat the move in 2024, finance ministry officials told Reuters on Tuesday.

The euro zone and the International Monetary Fund (IMF) together lent Greece more than 260 billion euros during its decade-long debt crisis which began in late 2009, in exchange for tough austerity measures.

The country’s third bailout expired in 2018.

“On Dec. 15, we will repay earlier than expected 5.3 billion euros to euro zone countries,” an official who spoke on condition of anonymity told Reuters, adding that the payment refers to loans maturing in 2024 and 2025.

Greece recently regained its investment grade credit rating after languishing for 13 years in the “junk” category.

Last year, it paid off the IMF, which provided it with 28 billion euros between 2010 and 2014 – two years ahead of schedule. It also repaid early 2.7 billion euros to euro zone partners as part of efforts to improve its debt sustainability, and hopes to continue on the same path in 2024.

“We might repay earlier more bilateral loans next year,” a second official told Reuters, without giving more details on the amount or the timing.

Euro zone countries lent Greece 53 billion euros in bilateral so-called Greek Loan Facility (GLF) loans during its first bailout, with maturities extending to 2041. With the planned payment this year, Greece will have repaid a total of about 13 billion euros.

Since emerging from bailouts in 2018, Greece has relied solely on bond markets to cover its borrowing needs. It plans to borrow about 7 billion euros next year.

It has a liquidity buffer of more than 35 billion euros due to higher than expected tax revenues, strong growth and primary surpluses.

Greece sees economic growth at 2.9% in 2024 following a 2.4% expansion this year, more than twice the eurozone average. It also hopes to achieve a 2.1% of GDP primary budget surplus next year on higher investment and strong tourism revenue.

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Explained: What is the dispute over Parthenon Sculptures between UK and Greece?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The standoff between Greece and the United Kingdom has turned into a diplomatic row after British Prime Minister Rishi Sunak cancelled a scheduled meeting in London on Tuesday, November 28, with his Greek counterpart.

The latest row is the longstanding dispute over the Parthenon Sculptures, commonly known as the Elgin Marbles, which has now turned into a diplomatic issue between the two nations.

According to the BBC, Greek Prime Minister Kyriakos Mitsotakis turned down a meeting with the deputy prime minister of the UK, offered as an alternative after PM Sunak could not meet him.

However, the Greek PM expressed his displeasure over the cancellation of the scheduled meeting, according to The Guardian.

“I [want to] express my annoyance at the fact that the British prime minister cancelled our scheduled meeting a few hours before it was due to take place,” the Greek PM said in a statement released by his Maximou office, the Guardian report added.

The statement reiterated the enduring strength of the friendship between Greece and Britain, emphasising their broad bilateral relations. It underscored that Greece’s perspective on the Parthenon Sculptures is well-established. PM Mitsotakis further expressed his disappointment, “I had hoped to have the opportunity to discuss them with my British counterpart along with other international challenges: Gaza; Ukraine; the climate crisis; migration.”

The Greek Prime Minister was scheduled to visit Downing Street at lunchtime on Tuesday, marking the conclusion of his UK trip. However, on Monday evening, during discussions with Labour Party leader Keir Starmer, news emerged that Rishi Sunak won’t be available for the planned meeting, the BBC report added.

What is the latest row over Parthenon Sculptures?

In an exclusive interview with BBC’s Laura Kuenssberg on Sunday, the Greek PM reiterated his country’s enduring plea for the Parthenon treasures to be “reunited” with the other sculptures originally situated beneath the temple they adorned. He likened the current division of the artwork between London and Athens to the unsettling concept of “cutting the Mona Lisa in half.”

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Huffington Post further quoted him saying, “This is exactly what happened with the Parthenon Sculptures and that is why we keep lobbying for a deal that would essentially be a partnership between Greece and the British Museum.” He added that such a partnership would facilitate the return of the sculptures to Greece, enabling people to appreciate them in their authentic historical context.

On the other hand, a spokesperson from 10 Downing Street emphasised the significance of the UK-Greece relationship, citing collaboration in NATO, joint efforts on issues such as illegal migration, and shared endeavours to address crises in the Middle East and Ukraine.

According to the BBC, a senior Conservative source conveyed that the cancellation of the meeting was inevitable due to pre-meeting commentary on the Elgin Marbles. The source reiterated the UK’s stance that the Elgin Marbles are an integral part of the British Museum’s permanent collection and firmly belong in the UK.

What is the dispute over Elgin Marbles?

The Elgin Marbles, crafted 2,500 years ago, were transported to Britain in the 19th century by British ambassador Lord Elgin. Lord Elgin obtained permission from Ottoman authorities, who governed Athens for four centuries, to remove the sculptures from the Parthenon on the Acropolis in Athens.

This collection comprises figures, friezes, and panels currently housed in the British Museum. The museum received a formal request for the permanent return of all sculptures to Greece in 1983. Roughly half of the surviving marble works are in London, while the remainder is located in a specially constructed museum beneath the Acropolis in Athens.

However, the British Museum is legally constrained from relinquishing ownership of the sculptures due to the 1963 British Museum Act, which prohibits the removal of objects from the collection. The museum has faced mounting calls to re-evaluate its artefacts, including the Benin Bronzes, which are regarded as crucial to Africa’s cultural heritage, allegedly looted in 1897 by a British military expedition.

George Osborne, the former chancellor and current British Museum chairman, had expressed interest in exploring ways to display the Elgin Marbles in Greece.

Would the UK consider returning the artefacts?

As reported by DW, in March this year, the UK Prime Minister asserted that the United Kingdom would not be amending a British law that currently prevents the return of the Parthenon fragments to Greece. However, the opposition parties see this as a failure of PM Sunak.

“If the Prime Minister cannot engage with a crucial European ally with whom Britain shares significant economic ties, it underscores his inability to provide the serious economic leadership our country needs. Keir Starmer’s Labour Party is prepared and ready,” a spokesperson of the Labour Party remarked, BBC reported.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Severe rainstorms claim 14 lives across Greece, Turkey, and Bulgaria

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The death toll from severe rainstorms that lashed parts of Greece, Turkey and Bulgaria increased to 14 on Wednesday after rescue teams in the three neighbouring countries recovered seven more bodies.

A flash flood at a campsite in northwestern Turkey near the border with Bulgaria killed at least five people — with three found dead on Wednesday — and carried away bungalow homes. Rescuers were still searching for one person reported missing at the campsite.

Another two people died in Istanbul, Turkey’s largest city, where Tuesday’s storms inundated hundreds of homes and workplaces in several neighbourhoods.

The victims in Istanbul included a 32-year-old Guinean citizen who was trapped inside his basement apartment in the low-income Kucukcekmece district, Turkish broadcaster HaberTurk TV reported. The other was a 57-year-old woman who died after being swept away by the floods in another neighbourhood, the private DHA news agency reported.

The surging floodwaters affected more than 1,750 homes and businesses in the city, according to the Istanbul governor’s office. They included a line of shops in the Ikitelli district, where the deluge dragged parked vehicles and mud into furniture stores, destroying the merchandise, DHA reported.

The floods also engulfed a parking area for containers and trucks on the city’s outskirts where people found safety by climbing on top of the roof of a restaurant, Turkish media reports said.

In Greece, record rainfall caused at least three deaths near the central city of Volos and in Karditsa, further to the west, according to the fire service. Three people were reported missing.

Authorities banned traffic in Volos, the nearby mountain region of Pilion and the resort island of Skiathos, where many households remained without electricity and running water on Wednesday. Traffic was also banned in another two regions of central Greece near Volos, while the storms were forecast to continue until at least Thursday afternoon.

In Bulgaria, a storm caused floods on the country’s southern Black Sea coast. The bodies of two missing people were recovered from the sea on Wednesday, raising the overall death toll to four.

Video showed cars and camper vans being swept out to sea in the southern resort town of Tsarevo, where authorities declared a state of emergency.

Most of the rivers in the region burst their banks and several bridges were destroyed, causing serious traffic problems.

Tourism Minister Zaritsa Dinkova said that about 4,000 people were affected by the disaster along the entire southern stretch of Bulgaria’s Black Sea coast.

“There is a problem transporting tourists because it is dangerous to go by coach on the roads affected by the floods,” she added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Modi in Greece while the nation’s northeast province fights a fire that has entered the fifth day | WATCH

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi received a warm welcome during his one-day visit to Greece on Friday, August 25. PM Modi paid tribute to the Tomb of Unknown Soldiers in Athens and he will hold talks with the European nation’s top leadership to strengthen bilateral ties. The Indian Prime Minister’s visit to Greece comes at a time when the country is battling one of the worst wildfires, reportedly the largest ever recorded in the European Union.

Firefighters in Greece battled against winds and scorching conditions on Thursday as they fought to control a series of wildfires that have been blazing for days in the northeastern part of the country and on the outskirts of the capital, Athens.

Firefighters in the country’s northeast province of Evros battled a blaze that was spreading over the area for the fifth day.

Firefighters in Greece’s northeast province of Evros battled a blaze that was spreading over the area, The fire, which is now on its fifth day has already killed 20 people this week#greece #wildfire #distruction pic.twitter.com/j8NQnF7x7a

— CNBC-TV18 (@CNBCTV18News) August 25, 2023

The wildfires, intensified by strong winds and dry weather, have left 20 people dead over the past week. According to the Washington Post, 18 of the deceased were migrants, including two minors aged 10 to 15, who were suspected to have crossed the border with Turkey. The lifeless bodies of these migrants were discovered by firefighters near a burned-out shack in a forested area in northeastern Greece.

Greece’s Climate Crisis and Civil Protection Minister, Vassilis Kikilias, pointed to instances of arson as the cause behind some of the fires near Athens.

During a televised statement, Kikilias expressed his outrage, stating, “Some … arsonists are setting fires, endangering forests, property and above all human lives. What is happening is not just unacceptable but despicable and criminal.” Kikilias disclosed that within a mere four-hour span, nine fires were deliberately ignited in the Avlona region, situated in the northern foothills of Mount Parnitha, near the Greek capital.

According to a BBC report, police made 79 arson arrests over wildfires ravaging the country.

The situation escalated as firefighting forces from across Greece and even neighbouring European countries rallied to combat the widespread blazes. In a single day, it was reported that Wednesday saw firefighters grappling with 99 separate fires across the nation. Among the most severe was a six-day-long fire in the Alexandroupolis area in the northeast, which necessitated multiple evacuations, including that of the city’s general hospital.

Meanwhile, PM Modi met Greek President Katerina N Sakellaropoulou in Athens. The day-long visit of PM Modi marks the first visit by an Indian Prime Minister in 40 years. PM Modi will hold talks with the top leadership of the European nation to strengthen the bilateral relationship between the two countries.

Landed in Athens. Looking forward to a productive Greece visit aimed at deepening India-Greece friendship. I will be holding talks with @PrimeministerGR Kyriakos Mitsotakis and also interacting with the Indian community. pic.twitter.com/CaHaYoa5yb

— Narendra Modi (@narendramodi) August 25, 2023

Prior to his arrival in Greece, PM Modi was on a three-day visit to South Africa to attend the 15th BRICS Summit. On the sidelines of the BRICS Summit, he held one-on-one meetings with several global leaders.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Modi arrives at Athens, here is all he will do in Greece

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi is on a one-day visit to Greece on Friday. PM Modi will meet his Greece counterpart Kryiakos Mitsotakis and also have multiple high level engagements during his day long stay.

Here’s the schedule:

08:55 am: Arrival at Athens International Airport
12:35 pm: Wreath Laying at Tomb of Unknown Soldier and Guard of Honour
12:55 pm: Ceremonial Reception and meeting with President of Greece
1:35 pm: Ceremonial Reception and meeting with PM of Greece
2:45 pm: Press Statements
3:15 pm: Business Lunch hosted by Greek PM
7:50 pm: Meeting with prominent personalities
8:35 pm: Interaction with Indian Community
9:55 pm: Departure from Athens

Modi in Greece | PM @narendramodi lands in Athens on a one-day official visit to Greece. He will have bilateral talks with his Greek counterpart Kyriakos Mitsotakis #ModiInGreece #modi #athens #greece @PMOIndia pic.twitter.com/tTzKw3KXy0

— CNBC-TV18 (@CNBCTV18News) August 25, 2023

Modi’s visit to Athens assumed significance as it would be the first prime ministerial visit from India since then Prime Minister Indira Gandhi visited Greece in September 1983.

On Thursday, Modi concluded his visit to South Africa during which he attended the “historic” 15th BRICS Summit and held bilateral meetings with several world leaders to further cement India’s relations with those countries. Modi arrived in South Africa on Tuesday for the first in-person BRICS Summit after three consecutive years of virtual meetings because of the Covid-19 pandemic.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow