the strongest tools for boosting investment activity and achieving sustainable growth, but also for supporting fiscal adjustment, insofar as they serve to reduce public debt. 3rd. tackling the high stock of non - performing loans, which is the greatest challenge facing the banking system. addressing this problem will not only alleviate the burden on cooperating borrowers, but will also enable banks to free up funds for channelling into more dynamic and extrovert businesses. this would contribute to a comprehensive restructuring of the economy in favour of tradable goods and services, leading to a rise in productivity and potential output, even in the short run. the actions described above, together with an exit from recession and a gradual recovery of the economy, will bring about stabilisation and, subsequently, a decline in the npl ratio, with beneficial effects on the economy as a whole. 4th. gradual lifting of the capital controls. the relaxation of the capital controls described earlier, along with improvements in confidence and liquidity, are expected to contribute to the normalisation of economic conditions by facilitating both enterprises and individuals in their transactions. 5th. reforms to support extroversion. the implementation of reforms in the markets for products and services and in the functioning of the public sector will lead to an increase in investment and employment, while it is also expected to encourage innovation and the introduction of new technologies by increasing competition. in turn, these developments will improve the quality of greek exports and expand the export base and overall competitiveness of the greek economy. this will ensure that the decrease in the current account deficit is sustainable, while also increasing potential output in the medium - to - long term. these actions will attract foreign direct investment and set in motion a virtuous circle signalling the definitive exit from the crisis and a sustainable increase in total productivity of the greek economy over the medium - to - long term. 6. conclusions the completion of the first review creates positive prospects for the recovery of the greek economy in the second half of 2016. at the same time, the commitment of our european partners to take action in order to ensure the sustainability of public debt in the short and medium - to - long term is a positive step forward. bis central bankers ’ speeches the bank of greece is of the view that the envisaged public debt management measures need to be specified, quantified and frontloaded. this would enhance the credibility and acceptance of the policies pursued, thereby helping to further consolidate the climate of confidence and strengthen economic recovery. moreover

home / news and media / newsroom / news list / news speeches remarks by governor of the bank of greece yannis stournaras at the 22nd rencontres economiques, d ’ aix - en - provence 10 / 07 / 2022 - speeches “ beyond risk reduction and risk sharing : remarks on the transformation of economic governance in europe ” the russian invasion of ukraine on 24 february 2022 has brought the european union ( eu ) and the western developed world as a whole in front of the greatest challenge since the end of the cold war. the military conflict has unpredictable consequences not only for the global and the european economies, but also for international geopolitical stability, security, peace and cooperation. it triggers tectonic shifts in world politics and urgently calls for an update of the eu ’ s security architecture, as well as for action to defend european values and institutions. shoring up the european economy against the effects of this new shock and preventing an interruption of the ongoing recovery are key priorities for the current economic policy at the european level. the magnitude and duration of these effects will depend on how the war unfolds, on the impact of the current sanctions and possible further measures and on the response of fiscal and monetary policies. the rupture in eu - russia relations will inevitably have lasting and far - reaching impacts on the european economy, particularly in terms of energy, defence and security, while the largest refugee crisis since 2015 is unfolding, this time with flows coming from within the european continent. russia ’ s war against ukraine is heightening the geopolitical tensions between the us and the eu, on the one hand, and russia, on the other. it is a new, major exogenous supply - side shock to the economies of the eu member states that also affects, through various channels, aggregate active demand. it occurred at a very critical time, when economies were rebounding globally from the two - year health crisis and the ensuing severe recession. apart from the incalculable human cost, the conflict has significant adverse effects not only on the economy in the wider region, but also on the global economy. it exacerbates the already strong inflationary pressures through further rises in energy prices and a new wave of medium - term price increases in metal commodities and basic consumer goods, notably in the food supply chain ; it erodes investor and consumer confidence and disrupts global trade and the international financial system. globalisation is in fact reversing.