T
he efforts that began in July 2012 did
bear fruit, and in late 2014 the Greek
economy had built up a positive momen-
tum.
Greek people have sacrificed a lot of their wage
benefits and income, through taxes and spending
cuts, and thus supported the Government’s
efforts to restore Greece’s economy to positive
GDP growth rates and achieve primary and cur-
rent account surpluses, while at the same time
many foreign investors invested a lot in various
sectors of the economy.
At the same period, the disposable income of
households was strengthened and poverty rates
fell, for the first time since the onset of the crisis.
As an overall outcome, the financial situation of
the country at the end of 2014 had undoubtedly
been stabilised, and gave clear signs of recovery.
Certainly, the economic situation was still fragile.
The crisis was not over yet, but the prospects
were promising.
However, since early 2015, Greece entered, once
again, into a “downward spiral”. The unsuccessful
conclusion of the 2nd adjustment programme, the
Trade with Greece
14
It is nowadays generally accepted, six years
after the implementation of demanding
economic adjustment programmes, that the
then Greek Government had managed,
between 2012 and 2014, to put the economic
adjustment programme back on track, by
accelerating fiscal consolidation, improving
competitiveness and undertaking a wide
range of concrete structural reforms.
Greek people have
sacrificed a lot of their
wage benefits and
income, through taxes
and spending cuts
By Christos Staikouras,
MP, Coordinator of Economic Affairs, New Democracy
Former Alternate Minister of Finance
