as has been the case recently. it cannot correct the pandemic - related supply chain disruptions or reduce the high energy and food prices stemming from the war in ukraine. in the fight against inflation, sound fiscal and energy policies of governments have also a significant part to play, and so has a responsible wage 1 / 3 bis - central bankers'speeches negotiating behaviour of social partners, which should prevent an exogenous energy shock that has worsened the terms of trade for a large net energy importer, like europe, from turning into an upward wage - price spiral bringing us back to the stagflation of the 1970s and early 1980s. it is encouraging and promising that, for the time being, there is no such wage - price spiral that would knock us off the 2 % target, nor is there any deanchoring of medium - to - long - term inflation expectations from that target. this gives us hope and courage to continue the anti - inflationary policy without raising interest rates so much as to cause a deep recession. and of course we keep hoping and working for a definitive end to this continuing uncertainty with the most effective means available : the end of this devastating war. central banks certainly recognise that fiscal policy should bear the brunt of supporting vulnerable citizens, with measures that need to be appropriately targeted and temporary, rather than permanent, and to provide incentives for energy saving. in this context, and given that 2023 is a national election year, the bank of greece, in its latest monetary policy report, called for an alignment and an understanding among the political forces, in order to implement the key economic policy commitments – most notably a return to sizeable primary surpluses that can ensure long - term public debt sustainability – and to preserve the remarkable achievements of the greek economy in the past ten years, pursuing as a key – national, i would say – goal an upgrade of greek government bonds to investment grade this year. in 2022, the bank of greece hosted the meeting of the ssm supervisory board ; in 2023, we will be welcoming the members of the ecb governing council in athens. hosting the two top meetings of the decision - making bodies of the ecb and the single supervisory mechanism, respectively, is a challenge for the organisational alertness of the bank of greece and its staff. i am sure that, this year too, we will all do our best to ensure impeccable organisation and offer our colleagues the hospitality that our country is famous for. in recent

tax rates and reviewing the efficiency of public spending. to the extent that action under the preceding point is implemented, a lowering of the direct and indirect tax rates will become possible, with positive impact on growth without jeopardising fiscal sustainability. on the expenditure side, efforts to better target social benefits must continue, while the existing exemptions from the general pension system provisions must be re - examined. the strengthening of the financial framework for local governments needs to be completed, in order to curb the accumulation of arrears, while the newly established independent fiscal council must assume an enhanced and effective role. ( e ) increasing public sector efficiency. the remaining reforms in the public sector, mainly geared towards greater operational efficiency, transparency and equitability, bis central bankers ’ speeches must be taken forward. the generalised application of automated online procedures is an important means for improving the interaction of citizens and businesses with the state and can further serve as a backstop against corruption. completing the national cadastre and eliminating the chronic obstacles to the efficient and speedy delivery of justice are fundamental prerequisites for a well - functioning state, as are the efficient deployment of human resources and a transparent staff appraisal framework that rewards productivity and work ethic. ( f ) strengthening active labour market policies and reducing the number of unemployed. the absorption of the unemployed is expected to be a gradual process that will take time, given the current slack in the labour market. a deescalation of unemployment – particularly amongst youth and the long - term unemployed – and a gradual recovery of the employment rate are expected to benefit, in addition to growth, from active employment policies, as programmes and actions financed by the nsrf 2014 – 2020 are phased in. actions that promote employment, for instance through the development of local employment partnerships and vocational training programmes, will also be instrumental in tackling unemployment, especially its structural component. however, this strengthening of active policies needs to be combined with eligibility controls and results - based assessment of programmes and with a fight against undeclared and uninsured work. ( g ) effective management of non - performing loans ( npls ). the effective management of non - performing loans will have a positive knock - on effect on lending to sound businesses, given that banks ’ ability to extend new credit is closely linked with the smooth and timely repayment of existing loans. the npl management model to be chosen must : ( a ) not give rise to moral hazard ; and ( b ) enable