Industrialists are calling for particular attention to what the government has agreed with its creditors, stressing that “the markets ask for greater credibility in exercising financial policy.”
In its monthly bulletin on financial activity, SEV discerns fatigue in consumer and business confidence data in recent months which leaves no room for misinterpretation.
Furthermore, the course of the markets – be it the Greek stock exchange, the state bond market or the meager upgrades by rating agencies – is not proportionate to the conclusion of the third bailout program and the potential access of the state, enterprises and banks to borrowing from abroad on better terms.
At the same time, it stresses, the markets have negatively assessed the statements by European Central Bank Executive Board member Benoit Coeure against the extension of the waiver that provides banks with cheap liquidity and Greece’s inclusion in the ECB’s bond-buying program.
All of the above, plus the Eurogroup decision to defer the last bailout tranche until next month, mean that without religious adherence to Athens’s pledges, the prospects of a robust economic recovery will be limited in the expected climate of political polarization.