Pressures both at home and overseas hound the Greek Prime Minister as the post-bailout days come closer. The country has been under 8-years worth of a European bailout programme and is now seeing it come to a close. But a Greece after these economic measures remains shrouded in mystery and uncertainty for many.
Domestically speaking, the end of the bailout coincides with the first national elections since the bail programmes began. The Greek economy is on a tightrope between capitalising on rapid momentum, or sluggish remaining quarters.
“There is quite a bit of catch-up momentum, but there is also a fundamental reason underpinning it. An improving Greek economy means stocks listed here will perform better, be they banks or energy.” – Bloomberg
Greece – Catchup Momentum?
According to Bloomberg, Greek bonds performed strongly due to the optimism surrounding an end to Bail-out guidelines. The country’s ASE Index has gained speed, increasing by 1.51%, hitting 824 compared to 671 last year. Political instability blights Tsipras’ thin majority and threatens longer-term economic strength, especially amongst investors.
Tsipras’ rivals consist of the emerging party called ‘New Democracy’ which is cutting at the former’s majority. New Democracy is pushing for a move from austerity to pro-business legislation and economic reforms.
Tensions are also emerging as Athens blocks talks between NATO, the UN and Macedonia. The latter of which seeks to join NATO against the territorial arguments of Greece, despite western desire to curtail Russian encroachement.
Any push by Tsipras for a ‘clean bailout exit’ has the potential to end badly for Greece. Culminating in an economic recovery that stops before it even begins, according to experts.“The government has made the big mistake of playing the ‘clean exit’ card too early, despite the lack of a plan for Greece’s economy in the post-bailout period.”