’ speeches i would like to close by recalling that during these last few years the bank of greece had to cope with historically unprecedented conditions that required swift decision - making and difficult and delicate handling. the bank responded to these heavy challenges outstretching its capacities, thanks to the hard work, ethos and dedication of its staff. it is to you therefore – members of the family of the bank of greece, who have successfully shouldered a heavy load – that i would like to say a big “ thank you ” and dedicate this book. bis central bankers ’ speeches

of the economy. had this collapse not been averted, losses would have been much greater. an exit from the euro area, as i had put in an interview, would have opened the gates of hell. bis central bankers ’ speeches 2. policy orientations to overcome the crisis against today ’ s more favourable background for the country, recovery appears to be ante portas. the year 2014 marks a halt to a deep and protracted recession. of course, the economy ’ s adjustment has not been completed. but as the first, difficult cycle seems to be coming to a positive end, it would be helpful to evaluate actions and omissions and, most importantly, draw lessons for the future. the bank ’ s positions concerning the exit from the crisis have been expressed based on a number of policy orientations, reflected in its publications and described in detail in the chronicle. these policy orientations can be summarised as follows : first, greece should make every effort to remain in the euro area and steer clear of default, which would have incalculable economic and social consequences. second, the adjustment programme and the agreements with our partners ensure the financing of the greek economy. without them, default would have been inevitable. this is why they must be implemented consistently. moreover, to a very large extent the programme ’ s terms relate to changes that should have been implemented long ago. third, in order to return to growth, securing its european perspective, the country should eliminate its fiscal imbalances, improve its competitiveness and enhance the export orientation of its economy, modernise the state, restore competitive conditions in markets and reduce the burden of public debt. greece also needs a new, outward - oriented growth model. fourth, fiscal adjustment should rely primarily on a rationalisation of expenditure. revenue must be increased by reducing tax evasion and broadening the tax base to make possible the necessary lowering of tax rates and the tax burden in the future. fifth, the historical challenge that the country is facing necessitates the greatest possible alignment of political and social forces, an understanding at the national level and the widest possible convergence of views. finally, the adjustment programmes are a necessary but not sufficient condition for exiting the crisis. a radical reorientation of the economy towards a new model requires a comprehensive national plan for growth, which will have far - reaching goals and will be implemented consistently. adhering to these policy orientations, the bank of greece has performed its institutional functions, informed