Not so long ago, my country was used as a cautionary tale by politicians across Europe – including in the UK – trying to persuade their electorates of the need for fiscal discipline. Greece’s left-wing Syriza Government were seen as the basket case of the continent – reducing us to a position where we were dependent on support from our neighbours, teetering on the brink of bankruptcy. Their politics was characterised by left-wing tantrums and unrealistic promises, breeding only frustration and disappointment. We could not have gone on with the way they were. Many doubted we would ever recover.
This month, though, under the stewardship of my party, New Democracy, our nation was hailed by The Economist as the ‘top-performing economy of 2023’ for the second year in a row. That isn’t a turnaround, that’s a miracle. Over the last decade we have managed not simply to arrest our economic failure, but to reverse it. Not simply to stem the tide of decline but to accelerate into growth and prosperity. We have built an economy that is delivering for the Greek people and nurturing entrepreneurialism and enterprise.
GDP growth at a healthy 1.2%, a 43% rise in the real value of our stock market, investment growing by 15% – whatever we are doing, it is working.
There is more to do, of course – much more. But there is also so much to celebrate. And much to learn from for other countries experiencing sluggish growth and struggling to pay their debts.
What worked for Greece? First and foremost, under our Prime Minister Kyriakos Mitsotakis (currently serving a second term) we made a plan and we have stuck with it. We haven’t allowed ourselves to be swept off course by populism or by lowest common-denominator pledges to irresponsibly increase spending on this or that hobby-horse. Benefits, pensions and support for the low-paid have risen – but they have risen responsibly, in line with our means and never outstripping them.
Second, our focus on inward investment is reaping dividends for our economy. In my day-to-day life, I help high net worth individuals from all over the world to spot and invest in opportunities in Greece. When it comes to attracting investment, a virtuous circle is needed: the more a country sticks to its plans and demonstrates growth, the more investment, the more growth – and so on.
Third, we have focussed relentlessly on keeping inflation low. Inflation is the most pernicious of silent taxes – shrinking everyone’s incomes, most hurting those who can afford it the least. At the end of 2023, inflation in Greece stood at 3.5%. In the UK – where your government and Bank of England have taken similarly tough measures – inflation was almost 4% at the end of last year. But in other European countries the story is far more bleak – Hungary, Czechia and Romania all closed out the year with rates at between 8% and 10%.
This combination of factors is what is delivering prosperity for Greece. A plan that is stuck to and that creates confidence. A focus on stimulating inward investment to create value. A tough approach to inflation, to ensure that the value of a hard day’s work is maintained as much as is possible – despite the global factors that affect us all.
What has worked for Greece is common sense, really. But common sense has not always prevailed in our politics. Looking from Greece to the UK, where I have a business and am a doctorate candidate at Warwick Business School, I offer these words based on our experience as you look towards your own, imminent electoral choice. Stick with the plan, encourage investment, crush inflation. If we can do it, so can you.
Article written by Christina Georgaki, originally published on Conservative Home
