Editorial: Rails

18:17 28/8/2019 - Πηγή: Τα Νεα

The new historic low interest rates with which the Greek state is borrowing bears witness to the fact that the Greek economy is beginning to come back on track on the rails of normalcy.

The 1.86 percent yield on Greek bonds that came on the heels of the complete lifting

of capital controls after four years reminds us of how painful was the measure for the Greek economy and that it kept it hostage.

One can see clearly that the imposition of capital controls did not involve only banks but rather the economy in general.

The fact that the economy is just getting back on the rails does not mean that it cannot run forward.

Moreover, it does not mean that the danger of a new economic derailment has been erdadicated.
The government is confronted with a dual wager.

Not only must the economy be stabilised but also it must achieve growth rates that will definitively bring light at the end of the tunnel.

To win the wager one must avoid a number of traps, the first of which is complacency.

What would be even more traumatic is an expanisve fiscal policy that would not take into account the rules of fiscal discipline.

This is a trap into which one can easily fall as is witnessed by the fact that certain government members speak of lowering the tax burden even though the economy is not quite back on track.