Greece Prime Minister Kyriakos Mitsotakis said he aims to significantly cut the debt ratio by the end of his second term as he laid out plans to increase wages and pensions and cut taxes.
(Bloomberg) — Greece Prime Minister Kyriakos Mitsotakis said he aims to significantly cut the debt ratio by the end of his second term as he laid out plans to increase wages and pensions and cut taxes.
Mitsotakis won a resounding majority last month, getting a mandate to implement the investor-friendly policies he’d touted during his campaign.
He told lawmakers on Thursday that he wants to cut debt to “well below” 140% of gross domestic product by the end of 2027, as the country eyes a return to the investment grade status this year. The ratio was still about 170% at the end of 2022, down from 206% in 2020.
The Greek premier also said that he wants to see Greece’s unemployment rate fall to 8%, exports to rise to 60% of GDP, a return to reasonable primary surpluses and the early repayment of bailout loans.
Read More: Mitsotakis Steps Up Reforms to Send Greek Crisis to History
He made good on election campaign promises to help with a cost-of-living crisis, announcing extra support measures such as tax cuts and wage and pension increases. He promised to radically restructure the country’s national health system and to open more new schools.
Investors have already piled into Greek bonds this year on the expectation the nation will regain an investment grade. That has lowered the nation’s borrowing costs to such an extent that it now pays less than Italy to borrow, a country deemed safer by rating firms.
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