Kyriakos Pierrakakis, Minister of National Economy and Finance and President of the Eurogroup, spoke at a meeting of the relevant parliamentary committee during the hearing on the reappointment of Yannis Stournaras as Governor of the Bank of Greece.
In his remarks, the minister referred to the challenges facing Europe and the Greek economy in the coming decade, while describing Yannis Stournaras as a figure who“was present at the critical moments of the Greek economy.”
His speech follows in full below:
“Ladies and gentlemen,
With a deep sense of responsibility, I am proposing today the reappointment of Yannis Stournaras as Governor of the Bank of Greece. This decision concerns more than just Yannis Stournaras himself.
It concerns the country’s institutional resilience and the credibility of the Greek economy at a time when uncertainty has become a permanent feature of the international landscape.
Let me begin by saying that we hope the ongoing peace efforts in the Middle East will bear fruit and lead to greater stability in the region. However, in recent years we have learned, in the most difficult and most telling way, that we are living in an era of great upheaval.
- The war in Ukraine has overturned decades-old assumptions about security and energy.
- The crisis in the Middle East has underscored just how fragile global stability remains.
- Inflation has made a violent return to the global economic system.
- And Europe is now called upon to simultaneously fund its defense, its green transition, its technological autonomy, and its competitiveness.
In this environment, states are obviously evaluated based on their economic indicators. However, they are also judged by the quality of their institutions, the seriousness of their choices, and the individuals who represent them in European and international decision-making centers.
Greece knows all too well what it means to lose trust. And it was precisely during the most critical moments of the country’s modern economic history that Yannis Stournaras was present. His public career is intertwined with the major turning points in Greece’s economic trajectory.
- Through European convergence and the country’s preparation for its participation in the hard core of Europe.
- Through the difficult period of the debt crisis, when Greece fought to remain standing within the Eurozone.
- And with the restoration of the banking system’s stability and the economy’s credibility after a decade of deep skepticism.
Memory is essential in politics. Because only by remembering how difficult a time the country went through can we grasp the magnitude of the progress that has been achieved.
Greece has now regained its investment-grade rating, and this signifies a shift in the country’s position on the global economic map.
Today, Greece borrows on terms that just a few years ago would have been considered unthinkable and far from a given. This restoration of credibility is now also reflected in the banking system. In 2019, credit expansion to the private sector was negative, at approximately-0.4%. Today, financing for businesses is recording strong growth rates.
According to official data from the European Central Bank, during the 2022–2025 period , Greece recorded an average annual credit growth rate to non-financial corporations of 10.9%, one of the highest in the Eurozone.
At the same time, non-performing loans, which in 2016 exceeded 48% of banks’ total portfolios, have now been reduced to 3.3%, the lowest level in more than two decades.
This is the difference between a banking system struggling to survive and one that can once again support the productive economy.
The Greek economy needs even greater credit expansion and more funding for innovation, investment, and outward-looking growth. Because what is needed now is not just the stability of the banking system. It is its ability to more vigorously support the country’s new productive model and the growth we will need in the coming decade.
The fact that Greece is now viewed differently by international markets is also reflected in the international confidence in the banking system.
I should mention here that UniCredit’s strategic partnership with Alpha Bank has been one of the most significant votes of confidence in the Greek economy in recent years. At the same time, we are seeing Greek banking groups becoming more outward-looking and expanding their regional presence—something that would have seemed unthinkable just a few years ago.
But precisely for this reason, the demands of the coming period are becoming even greater, and this presents a major challenge not only for our country but also, more broadly, for Europe. We have enormous savings, know-how, and human capital in Europe, and yet a large portion of these resources continues to finance investments outside of Europe.
That is why the Savings and Investment Union is perhaps the greatest strategic challenge facing Europe and all its member states. Greece is at the forefront of this major debate on the future of Europe’s competitiveness, financing, and strategic autonomy. Together with Yannis Stournaras, we participate daily in these critical European battles, each in our respective capacities.
And here, let me say, lies the deeper significance of today’s choice. Greece needs people with knowledge, experience, and international standing who can represent the country with seriousness and credibility in a constantly changing European and international environment.
With the renewal of his term, Yannis Stournaras becomes the first Governor of the Bank of Greece to serve three consecutive terms. Historically, the only other instance of a similar duration—with the third term coming to a successful conclusion, albeit slightly longer—is that of Xenophon Zolotas, though his terms were not consecutive.
Institutional continuity is of particular value to us at a time when stability and credibility are strategic advantages for any country, let alone our own.
Yannis Stournaras was never a convenient central banker; he spoke up when he believed he had to, and defended difficult positions even when it came at a political cost. This is the true essence of institutional independence: their credibility.
The Greece of the crisis is now a thing of the past; we have not forgotten what happened. We have learned from it, and the coming decade will be judged not only by economic growth, but also by the credibility of the choices made and the strength of each country within Europe.
Greece must play a leading role in this new era.
Thank you very much.”