Bank of Greece Governor Yannis Stournaras warned of new risks threatening inflation in Europe during his interview on Parapolitika 90.1. He addressed the challenges facing the European economy and the need for deeper economic integration. At the same time, Stournaras emphasized the importance of political stability in Greece, calling early elections during wartime “a huge mistake.” “The country is an example and the economy is doing very well – why would we hold elections now?” he stated.
As he noted, Europe must move forward with joint debt issuance, strengthen defense, accelerate the green transition, and invest in new technologies. The goal, he said, is to return to normalcy when the war ends through a more resilient and competitive economic model.
Stournaras on Middle East war and economic impacts on Parapolitika 90.1
Referring to the international situation, he stressed that the economy has been hit by a series of negative events: the pandemic, the war in Ukraine, tariffs, and geopolitical tensions. These developments, he said, have had significant impacts across Europe.
The duration and intensity of the war remain uncertain, while initial optimistic forecasts have already been proven wrong. Additionally, the destruction of facilities in the Gulf and the closure of the Strait of Hormuz further burden the global economic situation.
