They are predicting a political crisis in Greece, they are worried about wiretapping, they have frozen government work
Government work has been paralyzed, providence prevails… – The political risk is increasing…
Foreign investors are starting to get seriously worried about the Greece case…
Where the situation started to rationalize and Greece was returning to normality and the country was gradually gaining the confidence of the markets…foreign investors are starting to worry…
They believe that a political crisis may break out in Greece, either due to lack of government, or that New Democracy and Kyriakos Mitsotakis will be held hostage in the event of a government of cooperation…
They are worried about the wiretapping, here in Greece most of the media tried to downplay the issue but abroad where there is great sensitivity in matters of principle… they consider the case a personal blow to Mitsotakis…
Kyriakos Mitsotakis in London’s investment circles is not considered a “bright political figure” as a major factor of the American bank characteristically mentioned… with activity in Greece as well… but “he is starting to distinguish his political profile”… he also blurred the narrative of the ND with the provision of almost 50 billion that at some point… the bill will have to be paid…
What worries foreign investors?
1) You see that due to the pre-election period that will last 3-5 months… government work has been paralyzed…
Apart from excuses, everything is frozen and postponed until after the elections…
Concern over the planned 2023 reforms, concern over the conduct of bank placements that are impossible to settle for the elections…
Also and in contrast to the… investment grade that was almost deified by some politicians for the majority of foreigners it is an indifferent development…
It should be noted that the upgrade of Greece is postponed indefinitely since no foreign house will evaluate Greece at an investment grade amid the country’s murky political course and with the political risk being particularly steep…
It is worth mentioning that even with investment grade Greece will continue to have the worst bond yields in the eurozone and will not differ from current levels… e.g. in the 10-year bond 4.5%…
2) The issue of Greece’s “governability” is beginning to be carefully considered by foreign investors… they do not take Mitsotakis’ second 4-year term for granted…
Many political scenarios are circulating… but in practice if Mitsotakis does not govern again, e.g. the planning for the banks that changed radically, the planning for PPC will change radically and a number of other parameters, projects and reforms that were planned to be governed… with the new coalition…
An issue that concerns foreigners is the risk of anarchy, i.e. the impossibility of forming a government in Greece, the country that will be led into a downward spiral and into endless and time-consuming procedures…
Some foreigners do not rule out – in fact a report is being prepared and will be published in January 2023 – even the formation of a government of national purpose with a number of parties and opposite Mitsotakis’ ND which is targeted because of the wiretapping.
The eavesdropping deprived Mitsotakis of political capital, no matter how one evaluates the eavesdropping is a despicable act… which stigmatized the prime minister…
Although he didn’t know… he had to take radical measures but he realized among all the intelligent that Mitsotakis knew everything…
3) 2023 will be a global year of testing and where Greece was political stability… suddenly it will be the question if there can be political stability.
The Greek pollsters say that in the first election there will be 7 parties and if that happens… they will have every reason because of the MPs in their seats… to consider whether they can form a government of national purpose…
If Mitsotakis stays in the opposition… instead of winning a second term as prime minister it will be a clear political defeat for Mitsotakis on a personal level… the political damage that will be done and the irreversible…
For Kyriakos Mitsotakis if he loses…he loses a lot…everyone else starts from a disadvantageous position…
Conclusion
Foreign investors are starting to worry about Greece. They are predicting a political crisis in Greece, they are worried about wiretapping, they also froze government work, only expediency prevails…
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