The political crisis in France underscores Greece’s success story and the value of consistent reforms, according to a Financial Times opinion piece by columnist Chris Giles.
Citing a briefing from Greece’s Ministry of National Economy and Finance, the article notes that Greece’s borrowing costs have fallen to the level of France’s, demonstrating the impact of steady reforms in the Eurozone’s “periphery.”
When Greece’s borrowing costs dropped below those of France last month, attention turned to France’s political turmoil, the article states. As the Financial Times analyst states, the collapse of the French government following its failure to pass a budget reflects dysfunction in Paris; but the real story lies elsewhere: the remarkable success of countries once dismissed as the Eurozone’s “periphery” a decade after the debt crisis.
The article highlights Greece’s unexpected success, defying doomsayers and critics from 2015, when the country came close to exiting the euro under the left-wing populist SYRIZA government. Contrary to predictions of perpetual austerity and poverty, the Greek economy has grown faster than the Eurozone average and achieved the primary budget surpluses demanded by its creditors during bailout programmes.
Just last month, Greece repaid part of its 2010 bailout loans, as its regained investment grade status has allowed the country to borrow more cheaply on international markets.
From the pre-pandemic period in 2019 to 2024, IMF data shows that Greece’s per capita GDP increased by over 11%, compared to around 7% in Italy and Portugal, nearly 4% in Spain, and less than 2% in France. Germany’s growth during this period was negative.
The article argues that as we move into the second half of the 2020s, the lesson from a decade ago is clear: European solidarity is vital for putting public debt on a sustainable path, supported by fiscally stronger states.
It concludes by noting that the hard-earned successes of economic reforms in Europe’s periphery have often gone unnoticed. Today, however, they stand as a testament to what is possible, with Greece as an example for France and Germany to adopt the remedies they once advocated for others.
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Source: ANA-MPA
