Finance Minister Christos Staikouras said that Greece’s economy appears it can adequately withstand the pressure exerted by the coronavirus pandemic for the next two to three months, without resorting to its so-called cash buffer.
Speaking to state broadcaster ERT TV on Monday, Staikouras said the assessment was made by the ministry with the help of the Public Debt Management Agency.
He also estimated that the coronavirus-related recession will be temporary, because it is not based on inherent economic problems but on external factors.
According to Staikouras, if the health crisis lasts throughout the two coming months, the recession in the country will approach 3%, and the second half of the financial year’s results will contain positive features.
On March 21, Staikouras had acknowledged that the period of March, April and May will affect the course of budget execution as there will be a loss of revenues- taxes and social contributions, while the spending increases.
The cash was sufficient until early June, without the need to use the so-called cash-buffer of 32 billion euros.
During his interview to ERT, the Greek Finance Minister said on the rumors of upcoming wage cuts for civil servants and ivil service and the broader public sector that this is not something the government is considering, provided that the pandemic lasts as long as estimated.
This is 100% economic malakies. The most dangerous thing for an economy is an exogenous shock — which is what the coronavirus measures constitute. The idea that people can survive without any work, or even on 50% wages, is offensive and arrogant. It shows that Staikouras has no grasp at all of economics, and precious little understanding of how ordinary Greek people live.
This is going to be like 2010 again, but much much worse.