**Article summary**
The Governor of the Bank of Greece, Giannis Stournaras, whose term of office was renewed for the third time, estimated that the Middle East war would end due to the forthcoming elections in America, as it is not in anyone's interest to continue. He stressed that Greece has budget pillows, although the extension of the war would increase oil, gas and food prices. Stournaras explained that higher inflation in Greece is due to excessive demand and rejected the claims of bank overprofit, stressing that they have normal profits after years of losses.
Analyticalally:
Optimist for the imminent end of the Middle East war appeared the Governor of the Bank of Greece John Stournaras, "estimating that it will end, because elections are coming to America and it is not in anyone's interest to continue," while pointing out that "Greece has pillows this time".
In particular, Giannis Stournaras spoke extensively on the Youth Show "15 Minutes", commenting on war, accuracy, inflation, tax evasion, banks and 2015.
In the key points of his placements, among other things he pointed out that no other prospect fascinates him beyond his TTE work: "My castle is the Bank of Greece. There I fought the battle when I had to, and if I have to, I'll give it back."
For the possibility of taking over a special purpose government, he replied: "I am more useful at the Bank of Greece. I hope that won't be necessary."
Referring to the war, he noted that "it scares me, but I am an optimistic man. I believe it will be over, because elections are coming to America. It doesn't interest anyone to continue."
For the country's economy he stressed that "Greece has pillows this time. But if the war continues, oil, gas and food prices will rise. Asian countries have a much bigger problem,"
Commenting on the highest inflation in Greece, he explained that "we have too much demand, and in Europe too much supply. The solution is not to reduce demand, but to increase supply through investments and reforms."
As he added, the country now has a strong industrial base: "Greek products, such as wires, cements, drugs, dominate internationally. Greece is not just tourism, it has industry and energy."
Referring to accuracy he noted that the energy crisis and climate change affect prices worldwide. Greece, as an open economy, does not remain unaffected."
Regarding the reduction of the Special Fuel Consumption Tax, the TTE commander explained that "the financial problem would be great and it is not certain that the reduction would go through consumption. Competition in the fuel market is incomplete."
Referring to tax evasion he argued that it "reduced, but remains around 20-21% of GDP, when in Europe it is 15-17%. Undeclared income is estimated at around 50 billion euros, from 70 billion 15 years ago."
For the operation of the banks, Giannis Stournaras stressed that "we are no longer the country with the highest margins. Banks have great liquidity and are not pressured to increase deposit rates." As far as the profit is concerned, make it clear that "this is an exaggeration. Banks have had losses for years. Now they have normal profits, similar to the rest of Europe."
In detail the entire interview of the Governor of the Bank of Greece Giannis Stournaras on the "NEON" website and the "15 Minutes" show with journalist George Papachristos:
C. PAPAXRISTUS: Hello! Our guest tonight is the new central banker. His name is John Stournaras and you know him. New, in the sense that his tenure was renewed for the third consecutive time.
C. STURNARAS: It's been revived.
C. PAPAXRISTUS: That's a nice verb, it's been rediscovered, and I think you'll compete with Xenophon Zolota.
C. STURNARAS: God willing.
G. PAPAXRISTUS: Did he complete three terms then?
Other: STURNARAS: No, he completed 19 years, but not continuously, separately. He had done from 1955 to 1967 and after 1974 to 1981.
G. PAPAXRISTUSAnd then Prime Minister in 1989. Is that perspective charming?
Other: STURNARASNot at all. My castle is the Bank of Greece.
G. PAPAXRISTUS: Yes, but your name sounds like it could, in case there is a policy engagement that would impose, say, the formation of a special purpose government, you take over.
Other: STURNARAS: I am much more useful in the Bank of Greece. I told you, my castle is this. That's where I fought when I had to. And if I have to, I'll give it back. But that way.
G. PAPAXRISTUS: Is there any chance that it will be necessary?
Other: STURNARASI hope not.
G. PAPAXRISTUSDo you not fear the war and all that?
Other: STURNARAS: It scares me, but I am an optimistic man. Logic says the war will end because elections are coming to America. I don't think it'll do anyone any good to continue.
G. PAPAXRISTUS: The interim elections? If we get to November, will we last?
Other: STURNARAS: Look, Greece has pillows this time, but the point is not to get there because the prices of oil, gas, food will rise too much. Asian countries have a very big problem, much bigger than America and Europe.
G. PAPAXRISTUS: What is this because of? I've never heard of it.
Other: STURNARAS: It is that they have no energy of their own. In that they are very large populations, they need food. High gas price means high fertilizer price, so expensive food.
G. PAPAXRISTUS: Why do you say we have pillows? I now, before entering the studio, say, read that because the growth rate will be above expected, the government is already considering giving money.
Other: STURNARAS: Look, how much money you can give depends on what pillows you have. So, just because it has pillows, it has a primary surplus larger than what it had forecasted, it can give.
G. PAPAXRISTUSHow long will it go? Was it 4.4?
Other: STURNARAS: More will go.
G. PAPAXRISTUS: How much will it go?
Other: STURNARAS: It will go longer.
G. PAPAXRISTUSHow long should we wait?
Other: STURNARAS: It is not my job to announce it. The Minister of Finance will announce this.
G. PAPAXRISTUS: Yes, but you know, don't you?
Other: STURNARASOf course. I know.
G. PAPAXRISTUSBut you guys aren't the one who says, don't spend money because we're at war and we don't know what's happening to us?
Other: STURNARAS: This is very right, but on the other hand there are vulnerable fellow citizens who will be affected by the cost of war. Therefore, the advice, not only ours, but also the European Central Bank, is that any aid should be temporary, non-permanent, targeted carefully.
G. PAPAXRISTUS: Since we have opened this issue, I want to ask you why inflation in Greece is at least one unit above the Eurozone average? What's going on?
Other: STURNARAS: Mainly because in Greece we have too much demand, that is, we have demand, which exceeds production potential, while in Europe there is too much supply, there is less demand than production potential. Of course, solutions in Greece are not to reduce demand. It's about increasing the offer. And this will be achieved with higher investment and with reforms being made.
G. PAPAXRISTUS: Is there this prospect?
Other: STURNARASOf course.
G. PAPAXRISTUS: What are the investments, Mr. Stournara? Are they done at the level of the real estate?
Other: STURNARASThey're done. There are investments in the productive economy. For example, everyone says Greece, tourism, shipping. That's not all. Greece has a strong industry. Greek products. Greek cables dominate America, California. Greek cement. Medicine Greek. We have more than 10% of drug production in Europe, when our key, that is, population and GDP, is less than 2%. So Greece is no longer just Greece of tourism. Of course it is also tourism and has greater prospects for tourism, but it has industry now, it has energy now.
G. PAPAXRISTUSBut you recognize that we have a serious problem of accuracy.
Other: STURNARAS: Look, after the invasion of Ukraine we had a big issue with energy internationally. Climate change affects food. There is an international problem of accuracy, which also hits Greece, because we are an open globalised economy.
But I wanted to stay in the before. Investments in Greece in 2019 were 11% of Gross Domestic Product and we have reached 18% now. So we close the gap with the rest of Europe at a relatively fast pace. Empty which was created by the crisis. Because investment has fallen too much. Greece lost both capital and people with the brain drain.
G. PAPAXRISTUS: 25% lowered the country's standard of living.
Other: STURNARASExactly.
G. PAPAXRISTUS: The government says that I am very concerned about how to hold prices. I'll make targeted benefits and he doesn't take any critical measures. For example, why does it not reduce or zero the Special Fuel Consumption Tax?
Other: STURNARAS: Because the budgetary problem will be great. Fuel consumption tax if reduced does not mean at all certain that it will go straight to consumption and not go to greater profits of companies.
G. PAPAXRISTUS: How is this possible? What kind of mechanism is that?
Other: STURNARAS: We know very well when competition is incomplete, which especially in the fuel market we do not have perfect competition, as you know.
G. PAPAXRISTUSWe have two companies, two groups.
Other: STURNARASExactly. We have very few companies. It is one of the problems that the Greek economy has. He has few producers. So the measures he takes are much more targeted and much more correct.
G. PAPAXRISTUS: Not that the government keeps the Special Consumption Tax at these levels, because it collects large amounts of VAT? That it is essentially a horizontal tax that catches all consumers?
Other: STURNARAS: You collect more than goals because you step on tax evasion. You know, all the measures we have show that tax evasion in Greece is still much higher than Europe's average, but it is declining. In Greece it is around 20% – 21%, when in the rest of Europe it is 15% – 17% of GDP. We're much better. So today's undeclared income is estimated at around 50 billion. 15 years ago it was maybe 70 billion. So there's a lot of progress. Electronic transactions, for example, bring revenue.
G. PAPAXRISTUS: Where are most cases of tax evasion identified? What branches?
Other: STURNARAS: The usual suspects. Building. Free trade. To the garages.
G. PAPAXRISTUS: Car cooperatives.
Other: STURNARAS: Yes.
G. PAPAXRISTUSI see. What about it?
C. STURNARAS: I think checks are being done and slowly – the situation is getting better. That is why every year we have results in taxation better than targets. That's mostly why.
G. PAPAXRISTUS: Yes, how tax evasion will be hit, which, we have to say this, affects us all.
Other: STURNARAS: All of us are also affected by the arguments that it is good for us because ... it is not true. Tax evasion is very unfair. It is best for the government to collect taxes and share the extravagance with its social goals.
C. PAPAXRISTUS: There is a big debate, since you are the central banker of the country, about how banks operate in Greece. For example, interest rates on loans are much higher than deposit rates.
Other: STURNARASIt's not much anymore. You know, we are no longer the country with the highest margins, the highest spreds. We're about five in a row. Well, yes, you're right. There are reasons for this. The first reason is that we have very high liquidity in Greece. While we used to have a deposit flight, now the money's back. They've returned about where they were before the crisis. So banks do not feel pressure to increase the interest rates on deposits.
G. PAPAXRISTUSThey don't really want money.
Other: STURNARASExactly. On the other hand, there are indeed few banks anymore. Because in the crisis, with the large reduction in national product, with the flight of deposits, so many banks could not stay. So there are four systemics left. But recently there has been an ecosystem of powerful small banks. CrediaBank, which came from the merger of Attica Bank with Pagretia and Macedonia – Thrace, Optima, ABB, Epirus, cooperative banks, which are very strong today. For example, the two banks in Thessaly saved Thessalian Campo after Daniel.
G. PAPAXRISTUS: There is also another debate on banks' overprofits. That there are excessive charges that make money, they don't pay the consumer the same. Is that why you do something?
Other: STURNARAS: This is a great exaggeration. Banks have had losses for years. Now it is the second, third year to make profits, which have a return rate roughly similar to that in the rest of Europe. They have no profit. They're making profits today.
G. PAPAXRISTUS: So it is a myth that the opposition supports and supports it solidly. It's not called left parties. The PASOK says so.
Other: STURNARAS: Θα μου επιτρέψετε να σας πω ως κεντρικός τραπεζίτης ότι υπερκέρδη δεν υπάρχουν. Το να έχουμε κανονικά κέρδη μια ή δυο χρονιές, όταν για δέκα χρόνια πριν είχαμε ζημιές… Θα πρέπει και οι μέτοχοι, είναι και το Δημόσιο να έχουν απόδοση.
G. PAPAXRISTUS: Σας πάω σε ένα θέμα που το αντιμετωπίσατε ως κεντρικός τραπεζίτης τα προηγούμενα χρόνια. Εννοώ το 2015 με 2019. Το ξέρετε το ζήτημα και είναι αυτό της ανεξαρτησίας της Κεντρικής Τράπεζας, της Τράπεζας της Ελλάδος. Τώρα με την ανανέωση της θητείας σας για τρίτη φορά, θα πάρετε κάποια πρόσθετα μέτρα; Θα κάνετε κάτι ώστε να θωρακιστεί η ανεξαρτησία της τράπεζας;
Other: STURNARAS: Η Τράπεζα της Ελλάδος είναι απόλυτα ανεξάρτητη. Η κυβέρνηση η οποία υπάρχει τώρα έχει σεβαστεί απόλυτα την ανεξαρτησία της Τράπεζας της Ελλάδος.
G. PAPAXRISTUS: Οι προηγούμενες δεν την είχαν σεβαστεί.
Other: STURNARAS: Η πρώτη μου θητεία ήταν δύσκολη. Η δεύτερη ήταν ανέμελη. Η τρίτη ελπίζω να είναι και αυτή ανέμελη.
G. PAPAXRISTUS: Ο πρώην πρωθυπουργός, ο κ. Τσίπρας, σε μια συνέντευξη που είχε δώσει προ εβδομάδων και φάνηκε να είναι ειλικρινής, είπε ότι έπρεπε να είχαν κλείσει οι τράπεζες. Με το που κέρδισε τις εκλογές έπρεπε να τις κλείσει. Ποια είναι η θέση σας γι’ αυτό;
Other: STURNARAS: Να κλείσουμε εμείς τις τράπεζες από μόνοι μας, γιατί είναι δικές μας; Ότι θέλουμε κάνουμε; Οι τράπεζες για να κλείσουν πρέπει να υπάρχουν δύο λόγοι Πρώτον, να μην έχουν κεφάλαια και δεύτερον να υπάρχει μια μεγάλη κρίση και να τρέξει ο κόσμος να πάρει τις καταθέσεις του.
G. PAPAXRISTUS: Λέμε για το 2015.
Other: STURNARAS: Όταν προκηρύχθηκε το δημοψήφισμα, πράγματι ο κόσμος έτρεξε να πάρει τις καταθέσεις και έπρεπε να κλείσουν οι τράπεζες. Διότι αν άνοιγαν, την επόμενη Δευτέρα θα είχαμε πολύ μεγάλο πρόβλημα. Αλλά σήμερα δεν αντιμετωπίζουμε τέτοιο θέμα. Γιατί να τις κλείσουμε;
G. PAPAXRISTUS: Εκείνος λέει. Εγώ δεν έχω ούτε τις γνώσεις τις εξειδικευμένες…
Other: STURNARAS: Είναι θέμα κοινής λογικής. Δεν χρειάζονται γνώσεις.
G. PAPAXRISTUS: Το άλλο που θέλω να σας ρωτήσω είναι το εξής: Θα κάνετε ανασχηματισμό στην Τράπεζα;
Other: STURNARAS: Ανασχηματισμό έχω κάνει βαρύτατο. Οι μισοί διευθυντές σήμερα είναι γυναίκες σαρανταπεντάρες. Αυτός είναι ο μεγαλύτερος ανασχηματισμός. Το παρατήρησε και η κυρία Λαγκάρντ, η οποία όταν ήρθε εδώ, πριν από δύο χρόνια, για το Διοικητικό Συμβούλιο που είχαμε, έβλεπε ότι όλοι οι συνεργάτες μου που ερχόντουσαν ήταν γυναίκες. Λοιπόν μου λέει, τώρα κατάλαβα γιατί πάτε πολύ καλά. Έχετε τόσες πολλές “Αθηναίες”, εννοούσε τη Θεά Αθηνά. Και απαντάω, έχω και τον κύριο Τάβλα όμως δίπλα μου.
G. PAPAXRISTUS: Τον κύριο Χουλιαράκη θα τον κρατήσετε;
Other: STURNARAS: Φυσικά, ο Γιώργος είναι ένας εξαιρετικός οικονομολόγος.
G. PAPAXRISTUS: Επειδή δραστηριοποιείται στο κόμμα Τσίπρα. Αυτό εννοώ.
Other: STURNARAS: Δεν έχει σημασία. Δεν κοιτάζω εγώ τα κοινωνικά φρονήματα.
G. PAPAXRISTUS: Αυτά που διάβασα, ότι θα κάνετε Υποδιοικητή τον κύριο Πατέλη;
Other: STURNARAS: Αυτές είναι προτάσεις της κυβέρνησης. Πάντα σε συνεργασία με την Τράπεζα της Ελλάδος, αλλά δεν ξέρω αυτήν τη στιγμή ποιες είναι οι προθέσεις.
G. PAPAXRISTUS: Λοιπόν, με αυτό τελειώνουμε. Θα πρέπει να περιμένει ο κ. Πατέλης. Θα περιμένουμε κι εμείς, όσοι τέλος πάντων αγωνιούμε για την εξέλιξή του. Να ευχαριστήσουμε τον κ. Στουρνάρα.
Other: STURNARAS: Εγώ ευχαριστώ, είναι χαρά μου.
G. PAPAXRISTUS: Χαρά δικιά μας που ήσασταν εδώ. Καλή ανέμελη θητεία και όπου βγει.
Other: STURNARAS: Με υγεία.
