Bank of Greece Governor: War Will End Due to Elections; Fuel and Food Prices to Rise

In an interview with Giorgos Papachristos on NEON's "15 Λεπτά," Bank of Greece Governor Yiannis Stournaras shared his perspectives on the ongoing geopolitical conflicts and their economic ramifications, particularly for Greece. Stournaras expressed optimism that the war in Ukraine will conclude, largely influenced by the upcoming elections in the United States, suggesting that the continuation of the conflict is not in anyone's interest.

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My castle is the Bank of Greece. I fought the battle there when I had to and I will fight it again if necessary.

However, he cautioned that a prolonged war would inevitably lead to increased prices for oil, natural gas, and food globally. While acknowledging Greece's current economic "cushions" and growing investments, Stournaras stressed that the Greek economy, despite its diversification into industry and energy, remains an open economy susceptible to international shocks. He noted that Asian countries would face even greater challenges if the war persists.

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I am more useful at the Bank of Greece. I hope such a thing will not be necessary.

Stournaras also touched upon Greece's fiscal situation, predicting a primary surplus exceeding 5%, and advocated for targeted, temporary support measures for citizens rather than permanent ones. He addressed inflation by pointing to excess demand in Greece versus excess supply in Europe, emphasizing that increasing supply through investments and reforms is key. The Governor also highlighted the reduction in tax evasion, though it remains a concern, and underscored the importance of electronic transactions in boosting state revenue. His remarks underscore a cautious optimism about Greece's economic trajectory amidst global uncertainties.

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It scares me, but I am an optimistic person. I believe it will end because elections are coming in America. It is not in anyone's interest for it to continue.