Thessaloniki, and the importance of being boring

Prime Minister Kyriakos Mitsotakis’ moderation is cementing fiscal discipline in Greek politics, but it is not clear that he is building something new

Greek premier Kyriakos Mitsotakis at Sunday’s press conference on the sidelines of the Thessaloniki International Fair

Prime minister Kyriakos Mitsotakis lowered expectations well before he went to the annual Thessaloniki International Fair.

Speaking in Thessaly on September 2, he said, “Three billion euros – I repeat, three billion euros – is what [storm] Daniel will cost us. A large part is compensation, and an equal if not larger part is in infrastructure that has to be rebuilt to new standards… What you need to know about this cost, and I say it with a view to the Thessaloniki International Fair, where we will talk about our economic planning for the year ahead, is that resources are not unlimited. These resources have been redistributed.”

Mitsotakis announced a handful of new fiscal relaxation and redistribution measures in Thessaloniki on Saturday, all of them moderate, making it clear that his first priority was to maintain primary budget surpluses that inspire confidence in money markets and among investors. “Personally, I will not allow Greece to [undergo fiscal oversight],” he said, referring to the European Commission’s monitoring of budgets that ended in August 2018.