Greece is set to make a significant move in 2025 by repaying 5 billion euros ($5.3 billion) of bailout-era debt early. This decision, as stated by Prime Minister Kyriakos Mitsotakis during a banking conference in Athens on Monday, serves as a powerful signal of the country's remarkable fiscal recovery. Mitsotakis emphasized that this action underscores Greece's unwavering confidence in its public finances and showcases its unwavering commitment to fiscal discipline.

Finance Ministry's Debt Reduction Strategies

The Finance Ministry officials have outlined a comprehensive plan to reduce debt. This includes achieving primary surpluses, ensuring timely loan repayments, and intensifying efforts to combat tax evasion. These strategies are crucial in strengthening Greece's financial position and laying the foundation for sustainable economic growth.

Recovery from the Financial Crisis

Greece has successfully emerged from a decade-long financial crisis that once forced it to seek substantial financial assistance from its European Union partners and the International Monetary Fund. This recovery is a testament to the country's resilience and determination. Despite the challenges faced, Greece has shown remarkable progress in stabilizing its economy and restoring confidence among investors.

However, Mitsotakis' center-right government, which was elected for a second term in 2023, is now grappling with a cost of living crisis. This crisis has had a significant impact on Greeks' spending power, eroding their purchasing ability and putting pressure on their daily lives. Despite the absence of substantial opposition challenges, the high cost of living has gradually eaten away at the government's approval ratings and triggered unrest among unions.

Impact of the General Strike

The country's two main private and public sector unions have taken a decisive step by calling a general strike for Wednesday. This strike will have far-reaching consequences, keeping island ferries in port and disrupting various forms of transport and public services. The strike is a clear manifestation of the workers' dissatisfaction with the current economic situation and their demand for better living conditions.

GSEE, the main private sector union, on Monday accused the government of "refusing to take any meaningful measures that would secure workers' dignified living conditions." Chairman Yiannis Panagopoulos highlighted the stark contrast between the sky-high cost of living and the rock-bottom salaries, as well as the crippling impact of high housing costs on young people. "The cost of living is soaring while our salaries remain stagnant. This situation is leaving our youth in a tragic predicament," he said.

Economic Outlook and Forecasts

According to EU forecasts, Greece's economy is expected to grow by 2.1% in 2024 and maintain a similar growth trajectory over the next two years. This positive outlook is a result of the government's efforts in promoting economic stability and attracting investments. Additionally, unemployment, which is currently below 10%, is projected to continue declining, providing more employment opportunities for the Greek population. Inflation is also expected to moderate, with a projected rate of 3% this year, helping to stabilize prices and improve the purchasing power of consumers.