German media commented on the passage of the deadly cyclone “Daniel“in Thessaly.
The RND article states that damaged crops “will lead to higher prices for Greek consumers. Many farmers, small businesses and industrial enterprises in the region may face difficulties in servicing their loans. Because of this, banks are at risk of defaulting on loan payments. Financial experts estimate sector, these credit risks amount to approx. 2 billion euros.
The report also notes that at the same time “There is growing anger and despair among the affected population“, which “complains about the delay and disorganization of assistance. […] This is the third disaster this year, following the worst train accident in the country’s history in February and devastating fires in July. Many people feel abandoned by the state, and this feeling can benefit right-wing populists.”.
RND notes that “The disaster has hit Greece at a difficult time. The country is over-indebted and still economically weakened.”
Besides, “from 2024 the rules of the Stability Pact will come into force again EUwhich were suspended during the pandemic, which will mean greater spending discipline.” Next year, Greece must have a primary surplus of 1% to reduce debt. Thus, it is not yet clear where the funds will come from to pay compensation to flood victims and restore the damage caused.
Natural disaster causes uncertainty on the Athens Stock Exchange. There are rumors that the government plans to introduce a special tax on bank profits to finance these compensations. The Ministry of Finance categorically denies this, but bank shares are temporarily under severe pressure. One thing is certain: there is virtually no room for the tax cuts planned by Prime Minister Mitsotakis“.
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