Greece’s bailout review is almost complete, and this is very good news for Athens. However, we must be under no illusion that this will automatically bring foreign investments flooding into the local economy.
Foreign investors remain extremely cautious. They are waiting to see tangible proof that what has been agreed upon and then voted through Parliament will actually be implemented by the country’s governing coalition.
No foreign investor will put their money in Greece unless the leftist-led coalition – and the Greek state as a whole for that matter – are able to convince them that they plan to treat them in a serious and responsible manner.
There is still a long way to go. No amount of growth-inducing measures will remedy the lack of trust. The country still has a lot to prove before it earns the confidence of international markets.