Government · Athens
Bank of Greece governor calls 13th pension 'fiscal madness', urges discipline
Yannis Stournaras, governor of the Bank of Greece, dismissed the return of the 13th monthly pension as a reckless move that lacks fiscal room and would reignite difficult conditions for the country.
In brief
Yannis Stournaras branded the 13th-pension proposal as "madness" on 24 July 2026, saying it lacks fiscal space and would again push Greece into difficult straits.
He underlined that the Stability and Growth Pact imposes a spending cap; any extra benefit must be funded either by permanent revenue increases or by cuts elsewhere.
Stournaras described the Greek recovery as an economic "miracle", recalling that 80% of analysts in 2012 and 2015 had predicted a euro exit, whereas Greece is now growing faster than its peers.
He said the social-security system is not at risk thanks to post-memorandum reforms and an annual state contribution of 17 billion euros, while also highlighting the new capitalised TEKA pillar.
No room for unfunded handouts
Greece cannot afford a 13th pension without first creating permanent revenue streams or cutting other expenditures, Bank of Greece governor Yannis Stournaras said in an OPEN TV interview on 24 July 2026. He described the idea, favoured by PASOK and other opposition parties, as “madness” that would break the spending ceiling set by the Stability and Growth Pact. The governor stressed that any benefit must be matched by lasting productivity gains or offset by reduced outlays elsewhere.
“Those would be benefits not covered by fiscal space. Benefits without a productivity and fiscal-space counterpart. It will again lead to difficult situations.”
He challenged proponents to identify concrete measures that would permanently raise revenues or trim other spending before promising pension top-ups. Stournaras noted the current fiscal framework has a hard spending cap, and that breaching it without compensation would unravel the progress made since the debt crisis.
Greek economic 'miracle'
Stournaras pointed to the international recognition of Greece’s recovery, calling it an economic “miracle” that even sceptics now acknowledge. He recalled that in 2012 and again in 2015, roughly 80% of analysts, academics and politicians believed the country would leave the euro and collapse. Instead, Greece stayed in the currency union, is now growing faster than most peers and is steadily reducing its public debt.
“The international financial community talks about an economic miracle, whether we like it or not. Not only did we stay, but today we are growing much faster than the rest.”
The Bank of Greece chief disclosed he has been invited to speak about the Greek turnaround in Argentina next November, a sign that the episode is drawing global attention.
Pension system not in danger
Responding to a question about a Kathimerini report that foresaw a 1.3-billion-euro deficit in the social security fund EFKA by 2029, Stournaras was categorical: the system is safe provided no “madness” returns. He explained that the reforms carried out during the memoranda years have assured the long-term viability of the deficit, and that the state contributes 17 billion euros a year to the pension budget. He also highlighted the introduction of a capitalised pillar (TEKA), a reform that other countries had adopted long before Greece.
“The measures taken during the memoranda ensure the viability of the deficit of the insurance system for many years to come.”
Silence on rates amid global tensions
Asked about the fighting in the Strait of Hormuz and its possible effect on global and Greek interest rates, the central banker declined any comment, citing the European Central Bank's quiet period before monetary-policy decisions. He limited himself to saying he was in a period where commentary is prohibited, keeping the focus on fiscal discipline at home.