Editorial To Vima:The symbolism of lifting capital controls

11:31 27/8/2019 - Πηγή: In.gr

There is a great symbolism attached to the lifting capital controls and it signals a speedy return to normalcy.

After a 50- month limitation of transactions domestically and abroad the Greek economy is regaining its freedom as of 1 September.

The movement of capital will once again be unhindered as in all eorozone

countries and that will declare to everyone that Greece does not have systemic or other dangers that can feed suspicions and doubts.

Greec is once again a country worthy of trust where anyone can move freely without a danger of not having liquidity or of losing their investments.

After four years of sacrifices Greece has transcended an environment of reservations that was maintained by the markets and representatives of the international economic system.

A series of conditions and events – from the repeated return t the markets to a return of bank deposits that fled – allowed the PM to announce the lifting of capital controls.

The truth be told, most limitations on the transfer of capital had been lifted some time ago and the return to their complete abolition was simply a matter of time.It was clear that they might have been lifted six months ago and under a different government.

Yet, no one can deny the fact that the manner in which the Mitsotakis government is acting until now hastened the restoration of the free movement of capital.

Undoubtedly yesterday’s announcement is the result of the more general stabilising signals and reform messages that the government has articulated since coming to power.

Now one has the economic and political preconditions to securely lift the restrictions of capital that were imosed in a state of great crisis and a total lack of trustworthiness.

Obviously, the lifting of capital controls cannot solve all problems.

It must be accompanied by many more initiatives in order to confirm the return to a path of growth and prosperity.
Yet, it is an important step toward transcending the great economic crisis and that is how one should view it.