Monday April 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Provopoulos calling for consensus

 BoG governor issues political message while forecasting a 5 pct recession this year

By Sotiris Nikas

An unusually political message emerged from the annual report of Bank of Greece (BoG) Governor Giorgos Provopoulos on Tuesday, as in the context of revised forecasts for a greater recession and increased unemployment he called on society and political forces to decide whether they want the country to stay in the eurozone by applying the agreement with Greece’s creditors, or drop out and slide back decades.

Just a few days before the crucial May 6 general election, Provopoulos sent a universal message, warning that the country needs “full readiness from the very first day after the election period so as to win the war on all fronts.” He also called on citizens and the political system to undertake “the historic responsibility of choice” for the future and asked for “the greatest possible consensus” in society and in the political sphere, signalling that he is in favor of a coalition government.

In his report, Provopoulos revised the Bank of Greece estimate of last month for a 4.5 percent shrinking of the economy this year, suggesting that recession will amount to nearly 5 percent. He went on to warn that “unless recession is contained, the fiscal targets are all questionable.” He added that the state will have to stop having a “dominant position in the economy” and that the private sector will now have to take over.

In tacit criticism of the governments of George Papandreou and Lucas Papademos, Provopoulos commented that “it is now clear the changes implemented were insufficient.”

Greece can achieve a primary surplus as of 2013 and its economy is expected to begin recovering from the end of that year, Provopoulos said. Unemployment will top 19 percent this year, up from 17.7 percent in 2011, while bad loans in bank portfolios will amount to 35 billion euros, or 15.9 percent of all loans.

The BoG governor expects salary reductions to continue this year -- to the tune of about 10 percent -- and to carry on in 2013, while asking for a redraft of the negotiating rules between employers and employees. The average cost of labor per product unit will shrink for a third consecutive year, by about 5.9 to 6.8 percent across the economy this year and by 6 to 6.5 percent next year, Provopoulos said.

ekathimerini.com , Tuesday April 24, 2012 (21:27)  
European shares fall, Greek concerns weigh
Greek yields rise after creditors give Athens cold shoulder
ECB seen going all the way on QE as economists doubt taper
Pensions will not be cut, insists social insurance chief
Anastasiades says Akinci win raises hopes for reunification
Greek Cypriots welcomed the election of a moderate Turkish Cypriot leader in northern Cyprus on Monday, saying they anticipated a swift resumption of stalled peace talks. Turkish Cypriot ind...
Berlin silent on content of Merkel-Tsipras chat amid claims of ´dramatic´ situation
A German government spokesman confirmed on Monday that Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras had a telephone conversation on Sunday but declined to comment on the ...
Inside News
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
WATER POLO
Olympiakos wins Euro crown in women´s water polo
The women’s water polo team of Olympiakos won its first ever LEN Euro League at the Final Four it hosted in Piraeus by beating holder Sabadell from Spain 10-9 in Saturday’s final. After defe...
Inside Sports
ANALYSIS
If Greece falls, no one wants their prints on the murder weapon
«We're going bust.» «No, you're not.» «You're strangling us.» «No we're not.» «You owe us for World War Two.» «We gave already." The game of chicken between Greece and its international cred...
COMMENTARY
Reaching crunch time
Several cabinet ministers and MPs are no longer hiding it: They either openly admit that they are promoting the drachma or they murmur things like, “Why not the drachma?” Some go even furthe...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Anastasiades says Akinci win raises hopes for reunification
2. European shares fall, Greek concerns weigh
3. Greek yields rise after creditors give Athens cold shoulder
4. Berlin silent on content of Merkel-Tsipras chat amid claims of ´dramatic´ situation
5. Two Greeks in quake-stricken Nepal reported safe
6. ECB seen going all the way on QE as economists doubt taper
more news
Today
This Week
1. Greece’s day of reckoning inches closer as debt payments loom
2. Pensions will not be cut, insists social insurance chief
3. Anastasiades, Akinci speak and look towards fresh push in peace talks
4. ECB seen going all the way on QE as economists doubt taper
5. Berlin silent on content of Merkel-Tsipras chat amid claims of 'dramatic' situation
6. Two Greeks in quake-stricken Nepal reported safe
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
4. Leaving the past in the past
5. Denialism
6. The price of compromise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.