Thousands of companies in Bulgaria that exist only on paper appear to have been launched by Greeks in recent years for tax-evasion purposes, as a survey by the University of Bristol has shown that of the 14,000 Greek-owned enterprises in the neighboring country only 3,000 are actually active.
Greece has broken every record with the speed of its fiscal adjustment and reforms, yet after three memorandums and six years, the competitiveness of its economy continues to lag behind some developing countries, according to Sean Ennis, senior economist at the Organization for Economic Cooperation and Development’s Competition Division.
The election of Donald Trump as president of the United States could be considered a negative for the economy but a positive for the geopolitics of Greece. The impact on Greece, which is a very small part of the global political and economic puzzle, may be indirect rather than direct.
The recent decision by the Council of State concerning the TV license auction has piled political pressure on the coalition, which also has to face the eurozone’s unwillingness to discuss debt relief, as well as the strict stance of the country’s lenders on the second bailout review.
The British on Thursday voted to leave the European Union. A Brexit would have significant economic, social and political consequences for Greece, both short- and long-term. More worrying, it could open the way for a new round of speculation about a possible Grexit.
Fitch rating agency expects Cypriot banks to remain vulnerable to economic and political developments in Russia. Political instability in Greece and Cyprus could also erode confidence and trigger foreign deposit outflows, the agency mentions in a special report on Cyprus published on Tuesday.
Greece’s financing needs are projected to reach about 50 billion euros from October 2015 to end-2018, which would require a fresh cash injection by Europe of at least 36 billion euros over the three-year period, the IMF said on Thursday.