It was March 17, 2021, in an environment of restrictions due to Covid, when Greece went to the markets for the first time after 16 years to issue a 30-year bond. At that time, all of Greece was impressed as we had “raised” 2.5 billion, the offers had exceeded 26 billion euros and the interest rate was only 1.9%. That money had contributed to the repayment of the last IMF loans amounting to 3.3 billion euros. Three years later, on the day (April 23, 2010) of the anniversary of Papandreou’s speech from Kastellorizo, the country proceeds with the next “heavy” issue of 30-year duration with the aim of contributing to the early debt repayment of 5 billion euros from the loans of the first Memorandum. Game of Fate, 14 years later. A clear sign of how much better the country’s finances are on their feet is that no one deals with the new exit to the markets and debt repayment, nor of course remembers that “black” period of bankruptcy. It does not “sell” any of the above. Not even the new tight spending fiscal rules approved by the European Parliament yesterday and now set to be implemented in 2025.
The economy now revolves around the price of broccoli. Who cares about publishing and debt repayment, only shelf prices count. The government claims that the price of the famous vegetable, along with about a dozen other similar products has been reduced, citizens are indifferent as the prices of other products go up. They are sure that the day after tomorrow the price of broccoli will go up again and fall to another, but the average will definitely be higher than it was before.
Established accuracy is not compromised by findings using excel sheets. Needs work in the field. Breeders are wondering how they are selling their lambs at last year’s prices and butchers say their hands are tied in selling 2-3 euros more per kilo. No one asks the middlemen.
In terms of fuel, the whole of Greece sees gasoline prices increasing at gas stations, at a time when international oil prices are recording reductions internationally. No one addresses the fact that fuel prices are derived from Mediterranean refinery prices, where refining margins (profit) increased in the energy crisis and have remained at very high levels ever since. Those in charge of controlling this particular market could easily see this if they paid attention to the huge profits announced by the country’s two major refineries. Accuracy in gasoline and refinery profits are treated as unrelated issues.
If all the above seems a bit “raw” and oversimplified, pay attention to an experienced economist, the general director of IOVE Nikos Vetta. Inflation will decline, he says, but unlike the rest of Europe not below 3% this year, as despite the decline in energy (electricity) prices, Greece will have to solve the problems of the competitiveness of the internal market. Only then will he see the price level deescalate faster.
