Greece’s Economic Turnaround Surprises Europe

The German newspaper ZEIT highlights Greece’s unexpected economic transformation in an article titled "The Economic Situation of Greece: What No One Expected." Once burdened with legendary public debt, Greece’s economy is now outpacing Germany’s in growth, CE Report quotes Athens-Macedonian

For years, being Greece's finance minister was seen as a nightmare job, managing billions in debt while pleading with banks and international partners to fund essential services like hospitals and schools. Strikes for higher wages added to the challenges, alongside pressure from fiscally conservative European neighbors like Germany.

Today, Greece is reaping the rewards of its efforts. Prime Minister Kyriakos Mitsotakis announced plans for an early repayment of €5 billion in public debt by 2025, a sign of the country’s financial stability. The article notes that within a decade, Greece has shifted from being Europe’s "problem child" to a "model student."

However, the recovery hasn’t been entirely smooth. While foreign investments are flowing in—particularly in real estate—the resulting rent hikes, coupled with Eurozone inflation, have strained household budgets. This led to a recent general strike that temporarily paralyzed the country.

Despite these challenges, Greece’s economic indicators remain strong. While Germany’s economy stagnates, Greece is expected to grow by over 2% this year. The EU projects a 3% budget surplus by the end of 2023, with structural surpluses continuing into 2025, marking a dramatic turnaround from its years of fiscal turmoil.