Kyriakos Mitsotakis framed Greece’s next election as a choice between “realistic hope and experimentation,” outlining his proposal for a new contract with voters ahead of 2027 in an interview with The Wall Street Journal.
Speaking to journalist Gordon Fairclough, the prime minister set a target of economic growth at least twice the rate of the rest of the eurozone, linking that ambition to greater investment, higher wages and further reductions in unemployment.
He also acknowledged that stronger macroeconomic performance has not translated into better everyday living conditions to the extent he would like. He identified the cost of living as Greeks’ foremost concern and pledged to maintain fiscal balance despite international turbulence.
“Greece borrows more cheaply than four G7 countries”
Asked how Greece has changed since the financial crisis, Mitsotakis said:
“When we first took office in 2019, Greece was still struggling after a decade of harsh austerity. We lost 25 percent of our GDP and, frankly, there was not much hope for Greece. It was considered a country where implementing reforms was almost impossible. But I would say that, seven and a half years later, if you look at the overall progress we have made, I believe what we have achieved is truly remarkable.”
“We are now a country growing at a much higher rate than the eurozone average. We consistently record primary surpluses, debt is declining at the fastest rate among OECD countries, we have restored Greece’s overall credibility, and we are attracting significant foreign direct investment flows. All of that is reflected in how markets view us.”
“At a time when global bond markets are in turmoil, Greece borrows at a lower interest rate than four of the seven G7 countries. I do not think many people would have believed a few years ago that something like this would be possible.”
He connected the fiscal position to the government’s capacity to support households:
“At the same time, we are generating healthy primary surpluses that allow us to offer targeted support measures to help the Greek people cope with the cost-of-living crisis. The cost-of-living crisis is very real; it is Greeks’ number one concern.”
“There is no magic solution. But at least we are in a position where we do not have to impose austerity measures — many European countries are being forced to do so — and can offer targeted income support, while also focusing on continuously reducing the tax burden on Greek businesses and Greek citizens.”
The new contract: Growth at least twice the eurozone rate
Fairclough noted that wages remain low and GDP has not returned to its pre-crisis level. The prime minister replied:
“You are right to point out that wages remain relatively low, but they are significantly higher than they were seven years ago. And if you look at the average wage, you will see that it has also increased significantly. Of course, the cost-of-living crisis and the general increase in the prices of goods have obscured a large part of that increase.”
“So, looking at my goals for the coming years — and we have an election in 2027 — what I am proposing to the Greek people is a kind of new contract, under which we will target growth at least twice that of the rest of the eurozone. This is how we can further reduce unemployment, raise wages and increase disposable income. Of course, that growth must be investment-led.”
Investment beyond tourism and real estate
Asked whether Greece’s investment portfolio is broadening, Mitsotakis identified the sectors on which he is counting for further growth:
“I believe the point you are making is very important. Our economy does not depend on just one sector. Naturally, tourism is very important. We welcome more than 35 million visitors every year. They find a very beautiful country offering excellent services at prices that, in my view, remain very competitive.”
“But it is not just about tourism and real estate. It is about renewable energy, the agri-food sector, pharmaceuticals and logistics. Shipping is a sector that, as you know, attracts considerable interest not only from Greece but also from foreign investors. And, of course, there is the technology sector.”
“We are not where I want us to be”
Asked about the social contract and the relationship between citizens and the state since the crisis, the prime minister criticized the previous administration while acknowledging the difficulties households continue to face:
“Greeks suffered greatly during the crisis. And I believe that suffering was aggravated to some extent by the fact that, in the middle of the crisis, we elected a populist government of the radical left, which allied itself with the far right and promised citizens magical solutions to their problems. The ultimate result was that we came close to complete disaster. We therefore unnecessarily prolonged the crisis by four years.”
“Greeks are therefore wary. But the new contract must be based first and foremost on trust. Trust is built by focusing on accountability and making sure you can actually deliver what you promise citizens.”
“So, when I look at the economy, for example, what is my main challenge? At the macroeconomic level, we are performing exceptionally well. I want that to translate into a better life for ordinary citizens. Have we reached that point yet? The honest answer is no. We are not where I want us to be.”
He continued:
“But if I talk only about macroeconomics, if I talk only about interest-rate spreads and credit-rating agencies’ reports, I am overlooking the other side of the equation. We therefore have to acknowledge that citizens face difficulties, but we also have to make sure that what we tell them is genuinely realistic. Because the temptation to overpromise and underdeliver is always there, but ultimately that is what tears apart the social contract and destroys the relationship of trust between government and citizens.”
“We will never return to borrowing beyond our means”
Fairclough observed that Greeks appeared more familiar with deficits, budgets and fiscal policy than the average American.
Mitsotakis replied:
“Yes, because we experienced the pain. We now have that knowledge, and I believe we will never return to a period when we borrow beyond our means. That is my personal commitment. I am proud that we are reducing our debt so quickly, because the next generation — including my own children’s generation — will inherit a smaller debt burden than the one I inherited.”
“If that means that, in certain cases, I have to make painful decisions or tell citizens, ‘I understand the difficulties you face, I understand that you are asking for more, but if I satisfied those demands now, I would create greater difficulties in the future,’ I have an obligation to be completely honest and explain that to them.”
The election choice: “Realistic hope and experimentation”
Asked what lessons other European countries could draw from Greece’s experience, the prime minister discussed reforms and their political cost:
“As you know, every country is different. But looking back at what we have achieved, I would say the first lesson is that reforms work. The difficult reforms you pursue as a politician do indeed produce tangible results. However, you have to go through a period in which you must manage the political cost. Ultimately, you have to deliver results, because if you do not, citizens will look for an alternative.”
He then set out how he views the next election:
“I believe the real choice at the next election is between realistic hope and experimentation, particularly at a time when stability is essential.”
The message to France: “Markets are unforgiving”
Asked what advice he would give his French counterparts, Mitsotakis said:
“I do not like giving advice. I have excellent relations with France, as well as a personal relationship with the French president, Emmanuel Macron. But I believe the next government will certainly have to reduce the deficit at some point. Not because the European Union demands it, but because markets are unforgiving toward countries that fail to meet their fiscal targets.”
Asked how public support can be secured for such a policy, he added:
“Implementing austerity measures is never easy. Fortunately, we have put that period behind us. But if you need to implement austerity measures, make sure you do so at the beginning of your term. That is the only advice I could offer, because those measures work, but they have painful consequences in the short term.”
War and inflation: “They will make things harder, but will not knock us off course”
In the final question, on whether the energy crisis and market turbulence could derail the Greek economy, the prime minister said:
“No, they will not knock us off course, but they will make things harder. I believe Greeks understand that this is a crisis we did not cause. There is a war. Even the president and vice president of the United States, I think, acknowledged that the war had some impact on last week’s election results.”
“So yes, it will make things harder, because inflation carries a high political cost for those in government. But it will not knock us off course. Fiscal balance will be maintained. Of course, if things deteriorate again — that is not my forecast, but who knows what might happen — the situation will become more complicated for everyone.”
Source: pagenews.gr