“The effects on the Economy from the Ukrainian crisis and Geopolitics”, was the theme of the panel of the OT Forum with speaker Nikos Vettas, General Director of the Foundation for Economic & Industrial Research (IOBE) and professor of the Athens University of Economics and Business.
Mr. Vettas estimated that if there is an escalation in the crisis then the problems ahead of us will be very serious and not only financial
He noted, however, that if the situation eases in the coming months, then the economy would be able to “digest” the consequences: “The world economy has a huge stomach,” he said, adding that it “swallowed” Brexit, the extreme US trade policies under Trump, and also the debt crisis within the EU.
Referring to Greece, he said that the country ran very large deficits during the pandemic, arguing that it would now have to acquire supplies and adjust when there are new needs or when growth will not be what we wanted: “What we observe is that nothing is a given and that our environment will not always be favorable.”
Fiscal stability
Referring to fiscal stability, he said that it is not something that the country should do because the Europeans and the markets want it: “It is a condition for our country’s independence. We can not depend on the good disposition of Europe, or the investment firms. We owe it to our children not to burden them with debts.
Mr. Vettas stressed that fiscal stability does not mean closing the tap, stressing that in this case our country will collapse: “Every euro that enters and every euro that comes out of public funds must be sacred and valuable.”
“A country can have strong growth without creating large deficits,” he said, adding that benefits (subsidies) are needed in times of crisis, but that can not go very far.
Inflation
Asked about the scenarios being examined by the the Foundation for Economic & Industrial Research regarding the prospects of the European and Greek economy, Mr. Vettas said that even if the problem persists, the turmoil in the markets, whether it concerns energy or goods, will increase inflation by more than twice what we had initially estimated.
Latest News
The 12 Tourist Traps to Avoid in the Greek Islands
Visit less popular islands for cheaper prices and fewer crowds
German Min. Lemke: «Climate crisis poses immediate threat to our health; well-being»
Europe recorded more days of “extreme heat stress” (with the ‘feels like’ temperature exceeding 46 degrees Celsius) than ever before
OECD: Major Spike in FDIs in Greece over 2021-23 Period
The international organization calculates an average of 6.7 billion USD in Greece over the 2021-2023 period, up from 4.15 billion USD in 2017-2019
How TikTok Lost the War in Washington
Combination of coordinated efforts by its critics and missteps by the company led to the law forcing a sale or ban of the popular app
Greece in the Top European Destinations for Aussies in 2024
This year 16% of surveyed Australians are planning a trip to Greece
Developing the Blue Carbon Economy in Greece
Can Greece make money by protecting its marine environment?
EIB Appoints Greece’s Ioannis Tsakiris as New VP
Ioannis Tsakiris started the new role May 1 after spending 15 years at the European Investment Fund (EIF) and serving as Greece’s Deputy Minister for Development and Investments
Two Greek Beaches in Top 50 in the World
Both Greek beaches were on the list of the best beaches in Europe too
Eurostat: Greece 20th out of 26 European States in Hourly Average Wage
According to figures released by Eurostat, the Benelux Grand Duchy of Luxembourg, one of Europe’s hubs for finance, is in first place
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations