Greek Prime Minister Kyriakos Mitsotakis is set to make a significant announcement in the wake of a devastating rainstorm that claimed the lives of at least 17 people. This announcement will include state reforms and relief measures aimed at addressing the aftermath of the storm. The premier had initially postponed his annual speech on economic policy by a week due to the impact of storm Daniel, which is considered Greece’s most intense storm since records began in 1930, following a summer of destructive wildfires.
The Devastation Unleashed by Storm Daniel
Storm Daniel ravaged Thessaly in central Greece for three days, leading to severe flooding in cities and villages, effectively turning the region into an inland sea. The consequences were dire: hundreds of residents had to be airlifted or rescued from flooded homes using lifeboats, valuable crops were washed away, and tens of thousands of animals tragically perished.
Addressing Climate Change and Support Measures
In his upcoming speech, scheduled at 1700 GMT, Mitsotakis will discuss the challenges Greece faces due to climate change. He will also outline various support measures funded by both the state budget and the European Union to aid those affected by storm Daniel.
Much-Needed Reforms Across the State
Apart from relief measures, Mitsotakis plans to announce crucial reforms across the state to enhance ministry coordination, combat tax evasion, expedite judicial procedures, reduce bureaucracy in the health sector, and modernize the education sector. These reforms are deemed essential to bring the state in line with current needs.
The Importance of Fiscal Prudence
While implementing these reforms and providing relief to Thessaly, fiscal prudence remains essential. The government recognizes the need to balance its budget while addressing pressing issues resulting from the storm.
Challenges to the Government’s Image
The government’s response to recent disasters has impacted its public image. A recent poll indicated that 61% of respondents held a negative opinion of the government’s work, compared to 57% in May.
Positive Economic Indicators and Challenges
Mitsotakis is also expected to highlight Greece’s recent achievement of regaining an investment-grade credit rating, which could attract more investment and capital inflows. Despite challenges posed by wildfires and floods, Greece still expects economic growth of 2.3% this year, surpassing the euro zone average. Additionally, the country anticipates achieving a primary surplus of 1.1% this year and meeting its annual target in privatization receipts.
Impact on the Local Economy
Thessaly’s economic activity accounts for over 5% of Greece’s GDP, as per a Eurobank report. Any additional spending required to address the storm’s consequences will be included in a supplementary budget for 2023, ensuring that the country’s fiscal progress remains on track.
This announcement by Prime Minister Mitsotakis underscores the government’s commitment to addressing the challenges posed by natural disasters, implementing vital reforms, and maintaining economic stability amid adversity.
What prompted Greek Prime Minister Kyriakos Mitsotakis to postpone his annual speech on economic policy?
The speech was postponed by a week due to the impact of storm Daniel, which was Greece’s most intense storm since records began in 1930, following a summer of devastating wildfires.
What were the consequences of storm Daniel in Greece?
Storm Daniel led to severe flooding in cities and villages in Thessaly, central Greece. This resulted in the rescue of hundreds of residents, the loss of valuable crops, and the tragic death of tens of thousands of animals.
What topics will Prime Minister Mitsotakis address in his upcoming speech?
In his speech, Mitsotakis will discuss the challenges posed by climate change, outline support measures funded by the state and the European Union for those affected by the storm, and announce much-needed reforms across various sectors of the state.
Why is fiscal prudence considered necessary despite the relief measures for Thessaly?
Fiscal prudence is necessary to ensure that the government can balance its budget while addressing the urgent needs resulting from the storm and implementing necessary reforms.
How has recent disaster response affected the government’s public image?
Recent disasters have had a negative impact on the government’s public image, with a poll indicating that 61% of respondents held a negative opinion of the government’s work, compared to 57% in May.