OPINION

Using that foreign capital

Foreign capital inflows in the first five months of 2007 reached 20.5 billion euros, compared to 11.8 billion in the same period last year. Of that sum, 16 billion euros was invested in the bonds market and 4.5 billion in the Athens stock market to buy shares. Even though this capital is highly mobile, the massive inflows show that foreign players have confidence in the credibility and future of our economy. It is not just the hedge funds that are investing in shares and bonds but also the big pension funds in Europe and the USA. The question is whether Greece could evolve into a financial hub for Southeast Europe, which would mean that part of that capital could go into tourism, energy, commercial networks and industry, thus boosting economic growth. But such a shift requires a flexible government and a flexible public administration. For the time being, we have neither.