Bank of Greece Governor Yannis Stournaras said he does not expect economic growth to weaken after the end of the Recovery and Resilience Fund.
Stournaras made his comment at The Economist conference titled “30th Annual Government Roundtable: Progress in an age of upheaval: Geopolitics-Growth-Technology,” where he also referred to recent international developments.
He said the Middle East peace agreement created positive expectations for both growth and inflation in the eurozone – pointing to the decline in inflation in June to 2.8% from 3.2% – though the resumption of hostilities has heightened uncertainty once more.
As an example, he noted that oil prices rose to $80 a barrel from $70 within a week. The Bank of Greece governor stressed the need to accelerate the implementation of the recommendations outlined in the Draghi and Letta reports.
He also called for progress on the banking union, which, he said, would help limit deposit outflows from the European Union. In any case, he said, credibility in economic policies and fiscal discipline are essential.
