Quite a way to go yet

Greece’s return to the markets on Tuesday has a twofold significance. On the one hand, it marks the first phase of the country’s ability to borrow independently in the post-bailout era. On the other, it confirmed that there is still plenty of ground to be covered before Greece gets back to normal considering that the country borrowed at a 3.6 percent rate while Portugal’s five-year bond had a yield Tuesday of 0.46 percent.

This distance will not be covered as long as the economy’s prospects are overshadowed by the so-called “political danger,” which will persist for as long as the uncertainty caused by a weak government whose stance is dictated by pre-election concerns.

The economy’s credibility will only be restored with the political stability to be provided by a new government with a powerful mandate.