[InTime News]
The war in the Middle East, combined with the election scenarios that have recently emerged due to political developments, are creating a mix that is aggravating and even dangerous for the economy.
Analysts say the uncertainty that already prevails due to war will worsen further in the event of elections, affecting economic activity and investments. Regardless of the scope political developments leave for holding early elections, the economy will suffer from such a development, those involved in it note.
Bank of Greece Governor Yannis Stournaras told Kathimerini that an early election would cause destabilization, in a difficult situation. Similar concerns prevail in the National Economy and Finance Ministry, as its executives report, with an eye, among other things, on the resources of the Recovery Fund.
The possibility of losing part of the remaining resources of the fund is the most obvious risk. Greece is due to receive over €11 billion in grants and loans (after the expected disbursement of €1.18 billion approved by the commission). To claim them, Athens must fulfill by September, when the last of the two remaining requests will be submitted, 177 milestones, namely reforms and projects.