Stournaras, the President and elections with a broken economy
One day is left for the first vote in the Presidential election and the political circumstances are getting worse, quickly creating an…
One day is left for the first vote in the Presidential election and the political circumstances are getting worse, quickly creating an environment of swift destabilization.
There was more than enough tension on Monday, the political scene resembled a battle scene and the comments of the Governor of the Bank of Greece caused more harm than good.
His reference to liquidity problems caused great concern and the clarifications he later provided failed to convince anyone; on the contrary the questions multiplied.
Now everyone is desperate to find out what is going to happen, how they can protect themselves and what is best to do.
Many assumed that we are secure, that the two-month bailout extension would ensure that the economy would carry on as normal.
Some estimated that there would not be any problem before the completion of the Presidential election.
Others predicted that if any problems arose, that would after the 29th of December and only in the case of general elections being called.
Mr. Stournaras’ comments clipped everyone’s wings.
The truth is that Mr. Stournaras’ position does not allow any acrobatics or balances.
He has an institutional obligation to warn everyone.
Just like he has the obligation to ensure the stability of the system, the banking sector in particular.
If he actually does find that liquidity is being restricted due to the increasing interest rates and that the funding options of the economy are quickly being restricted – the Greek economy has been outside of the markets for some time now, aside from a break last spring – then he is obliged to warn the MPs and political forces.
And if he finds undesirable moves from account holders, then he obliged to issue a warning and take the necessary measures to protect and cover the economy.
The previous experience from 2012 however, points to less talk and more action.
With the climate that tends to dominate there is significant danger that the three votes in the Presidential election will be carried out under circumstances of great upheaval and concern.
If the three votes are fruitless, then the election campaign to follow will be unprecedented.
The political tension and concern is sky-high, so what can anyone expect from the helpless and powerless people?
Some are rightly concerned that the election campaign can turn out to be totally detrimental to the economy and the climate of trust.
In this case it is likely that we will have elections with a broken economy, whatever this may mean for the country and the people…