A grim forecast for Greece’s economy
Varoufakis characterises the 2025 budget as emblematic of a “living dead state,” warning of declining consumption, a bursting real estate bubble, and an unsustainable debt load. He argues that austerity measures and systemic issues in banking and debt management are driving the economy further into stagnation.
“The predatory class that governs us is thriving, while 80% of society can no longer bear the weight of this so-called resilience,” he notes, highlighting the disparity between Greece’s oligarchic elite and the broader population.
Banking and housing woes
Varoufakis sharply criticises Greece’s banking system, which he claims has become an instrument of foreign funds and local elites. He calls for an end to the “Hercules” asset protection scheme and advocates for a public-private debt management entity to address the crisis of non-performing loans that continues to drain the economy.
The housing market, another flashpoint, is described as a ticking time bomb. “The real estate bubble has already begun to burst,” Varoufakis warns, linking this to rising inequality and worsening conditions for small and medium-sized enterprises.
Austerity and external shocks
The analysis highlights Greece’s spiralling current account deficit, which has returned to pre-2008 crisis levels, with imports far outpacing exports. Austerity remains entrenched, with the European Commission capping state spending growth at 3.7% annually for the next four years.
Varoufakis predicts that the 2025 budget is ill-prepared for external shocks, including a downturn in exports, tourism, and real estate, exacerbated by global developments. He also points to international pressures, such as increased military spending and demands for European contributions to Ukraine’s reconstruction.
A call to action
Varoufakis concludes with a stark warning: “Just as the 2008 budget collapsed under the weight of harsh reality, the 2025 budget will deepen the country’s dependency and hollow out its economy.” He calls on Greek citizens to mobilise against the budget, advocating for a new economic direction prioritising sustainability and independence from foreign interests.
MeRA25 vows to support these struggles with analysis and active participation, positioning itself as a key voice against the policies driving Greece’s economic and social decline.
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