Blog

25 / 1 - A study by an international group of economists at PwC predicts that 2017 will be a year of uncertainty. Among the scenarios for the new year is that of a possible election in Greece.

According to the study, at least five elections are expected this year in the Eurozone, in Germany, France, the Netherlands and possibly in Italy and Greece, which will lead to a disruption of the normal political cycle. In Spain, a referendum on the future of Catalonia is likely to be held.

25 / 1 - The European Investment Bank (EIB) announced today that it will stick to its target of investing $100 billion over the next five years for actions related to tackling climate change.

As it underlines in a statement, "contributions from financial institutions such as the EIB are crucial to enabling countries to achieve their goals under the Paris Agreement on Climate Change, which requires the global average temperature increase to be kept well below 2 degrees Celsius above pre-industrial levels."

24 / 1 - Gazprom's intention to use the TAP pipeline to transport natural gas to Italy was officially announced for the first time by the deputy chairman of the Russian company, Alexander Medvedev.

24 / 1 - House prices are recording a decline, which in some isolated cases has reached 70%, as the real estate market enters another year of crisis, during which it is unlikely that the negative situation that has developed will be completely reversed, at least for the majority of properties and areas. Moreover, another aggravating factor for the market is expected to emerge this year, the issue of settling "bad" loans, which is linked to the liberalization of auctions, even for first homes.

This is pointed out, among other things, in his relevant analysis by Mr. Babis Charalambopoulos, scientific advisor to the company of certified appraisers Solum Property Solutions and former president of the Hellenic Institute of Appraisals (ELIE), adding that "over-taxation with direct and indirect taxes and insurance contributions is the icing on the cake."

23 / 1 - In a society that survives on pensions and its most dynamic part, the young people from 18-35 years old, abandons it or thinks about abandoning it to seek a better fate abroad, the Greek one is evolving. The long-term economic crisis with the so-called "middle class" as its main victim not only leads to a further reduction in incomes, to impoverishment and widening inequalities, but now openly threatens social cohesion. The "treatment" that goes by the name of a constant increase in direct and indirect taxes may lead to primary surpluses, but they do not return to citizens in the form of social goods, as at the same time public spending on health and education is being reduced.

These findings – and more – are the conclusions of the 2016 income survey, which was conducted by the Small Business Institute of the General Confederation of Professional Craftsmen and Merchants of Greece (GSEVEE) on a nationwide, representative sample of 1.000 households from November 14 to 24, 2016. Specifically, according to the survey data, 75,3% of households experienced a significant decrease in income in 2016. 37,1% of households declare that they live on an annual income of less than 10.000 euros, while for 49,2% the main source of income is a pension. This percentage had reached its highest point in December 2014 (52%) and the slight decline observed today is mainly attributed to the reduction in pensions. Salary is the main source of income for 37,9% (compared to 37,3% in the 2015 survey).

23 / 1 - The European Central Bank (ECB) is not obliged to compensate commercial banks that held Greek bonds for the damage they suffered in the context of the Greek debt restructuring (PSI) in 2012. This was decided by the European Court of Justice following an action brought by a French company and a French bank that held Greek bonds and asked the General Court of the European Union to order the ECB to compensate for the damage of €11 million caused by the PSI. In their action, they argued that the ECB had violated “the legitimate expectations of private bondholders, the principle of legal certainty and the principle of equal treatment of private creditors.”

22/1 – In the run-up to Brexit, the British Prime Minister announced that the government will select sectors of the British economy to strengthen as part of the new industrial strategy. T. May has placed industrial strategy at the heart of the government's policy for the post-Brexit era and, in essence, intends to select "national champions" in various industrial sectors. The British government believes that biotechnology, artificial intelligence and mobile networks have a bright future.

The more traditional sectors that the British government intends to strengthen include transport, telecommunications, energy and construction. London has already announced that it will spend 170 million pounds to improve technical education in the country. The strategy is “about the economy of the future, to ensure that businesses grow and are encouraged to grow in Britain,” Mrs. May said last week in a television interview.

22 / 1 - Warning since the first days of 2017 that Donald Trump would be a "horror movie" for Mexico, the country's central bank cultivated the misleading impression that the Mexican economy was essentially at risk from the change in policy in the US due to the new president.

21 / 1 - "Any country wishing to cut ties with the Eurozone must first settle all its financial claims and debts," is the message sent by ECB President Mario Draghi.

In a letter to two Italian MEPs, Mr. Draghi, referring to the possibility of the eurozone losing one of its members, emphasizes, among other things, that "if a country is going to leave the eurozone, then the claims of the central bank of that country or its outstanding obligations towards the ECB should be fully settled."

21 / 1 - We had a very poor period in privatization revenues in the two years 2015-2016. The value of completed transactions did not exceed 600 million euros, revealing the government's reluctance to reduce the state and utilize its wealth. This became visible, both during the privatization of the airports and TRAINOSE, a few days ago. The executives of HRADF seem to be "pushing" the cart, but almost alone.

20 / 1 - The administration of new President Donald Trump announced tonight that its trade strategy to protect US jobs will begin with the country's withdrawal from the Trans-Pacific Partnership (TPP), the trade agreement in which 12 countries participate.

A White House statement released after Trump's inauguration stated that the US "will crack down on those countries that violate trade agreements and harm American workers" in this way.

20 / 1 - The severe consequences that the EU sanctions against Russia and therefore the "counter-sanctions" from Moscow have on the economy and jobs in the entire European Union, as well as in its individual member countries, are documented by a study by the prestigious Austrian Institute for Economic Research, according to which 2015 jobs in the EU have been "destroyed" in 400.000 (excluding Croatia), while the cost to its economy amounted to 18 billion euros.

20 / 1 - The credit rating agency S&P confirmed Greece's creditworthiness at B-/B and maintained its outlook stable.

The firm noted that the growth of the Greek economy in the period 2017-2020 will be supported by tourism and the gradual improvement of the labor market.

19 / 1 - No change, no news. By keeping all lending rates and the main parameters of the bond purchase program unchanged, the European Central Bank sent a message yesterday that there is no need to review its monetary policy any time soon. Growth and inflation are generally in line with the forecasts made by the ECB in December. The ECB reiterated, as it has done on other occasions, that it is ready to extend the size and duration of the bond purchase program if necessary. Asked whether the ECB will increase lending rates before the end of the program, Mr. Mario Draghi avoided answering on the merits, saying that the issue had not been discussed. He added that there had also been no discussion on how the ECB could reduce its monthly bond purchases when the time was right.

19 / 1 - The net wealth of Greeks, after deducting loans, is valued at 856 billion euros, compared to 1,023 trillion euros in 2009, shortly before the outbreak of the crisis, according to research by Credit Suisse, which is republished in the weekly economic bulletin of the Federation of Greek Enterprises and Industries (SEV).

Specifically, in 2009, net worth per adult had increased to 114 thousand euros, while in the rest of Europe, net worth per adult was 93 thousand euros.