Markets are now adjusting to a new interest rate environment, however, interest rate burdens on Eurozone government budgets relative to GDP are currently at their lowest level in half a century, despite significantly higher public debts. This was one of the points the head of the European Stability Mechanism (ESM), Klaus Regling, made during his speech at the Economist conference.
“If Russia cuts off natural gas flows to Europe, the consequences will be serious for the European economy. However, I do not agree with the view that raising interest rates will create a new euro crisis,” noted Mr Regling.
Read also: Credit and recommendations in Greece by the ESM
Significant progress
Referring to Greece in particular, he stressed that it had recorded “significant progress”, recalling that the country exited the Eurozone’s enhanced surveillance regime in mid-June and is now merely in a post-program monitoring framework, which for him is an important normalization step after years, despite the fact that some significant economic challenges remain.
Read also – Regling: The rise in interest rates will not affect Greece
As he said, due to ESM interventions, most of the Greek debt has a fixed interest rate with long maturities – 20 years on average, which means that he does not see any immediate threat to debt sustainability.
Latest News
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction
Greek 30Y Bond Issue Oversubscribed by 11 Times
Very high demand pushed down the coupon's interest rate to 4.125%
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing