Eurozone crisis

Preliminary data from the European statistical office Eurostat reveals that the Eurozone and the European Union managed to maintain economic stability in the fourth quarter of 2023, bouncing back from a 0.1% contraction in GDP during the previous quarter.

Bulgaria has secured the second spot in the European Union for maintaining the lowest external debt relative to GDP, based on Eurostat data from the end of the third quarter of the previous year. The country's public debt stands at 21%, making it one of the most fiscally disciplined nations in the EU.

The overdue debt owed by Greeks to the state and financial institutions - i.e. banks and funds - is more than the country's gross domestic product, reaching 224.2 billion euros.

In a significant turn, the unemployment rate across the Eurozone hit a remarkable record low of 6.4% in November 2023, marking a decline from the previous 6.5% in October and notably lower than the 6.7% reported a year earlier in November 2022.

Reducing the ratio of debt-to-gross domestic product at the fastest rate in Europe, achieving higher positions in the rating agencies' scales and further reducing the cost of servicing the country's borrowing, are the three main objectives set by the financial staff for the crucial issue of managing the Greek debt.

In an interview with Kathimerini, Dr Peter Schoof, the former German ambassador to Athens during the challenging period from 2014 to 2017, reflects on the recent passing of Germany's former finance minister, Wolfgang Schaeuble, stating, "No other German politician has asked me regularly about the situation of the 'ordinary Greek' as he did."

Before the tumultuous year of 2015, Greece actually came close to leaving the eurozone in 2012, following the election of Antonis Samaras as prime minister. Chancellor Angela Merkel was notably apprehensive about the New Democracy leader's pre-election campaign. 

Without Wolfgang Schaeuble's strong political presence, it is doubtful that the eurozone would have been able to face the monumental challenge of an economic crisis within its own borders and, above all, cope with the Greek crisis by taking initiatives that went beyond the narrow framework of the Treaties and required the allocation of hefty funds.

A significant reduction in the debt ratio, the strengthening of economic resilience, and improvement in Greece's governance indicators are the three essential steps required for the country to fully normalize and regain an A credit rating, as it had before the debt crisis, thus aligning with the average credit rating of eurozone economies. This analysis comes from the Bank of Greece.

Greece plans to raise up to €10 billion from debt markets via short- and long-term bond issues next year, its debt agency PDMA said on Friday.

Outlining its 2024 strategy, PDMA said Greece plans to repay ahead of schedule more bailout loans and reduce the amount of T-bills in circulation.