Finally, it’s over! Good morning to you all, and don’t worry—we haven’t returned to 1993, when Andreas Papandreou famously declared ‘finally, it’s over!’ as he succeeded his father, the current prime minister’s predecessor. However, no matter how we approach it, some relief from the ‘misery’ of the constant reshuffling of recent weeks will be felt by all of us. Of course, except for those who see an exit or had expectations but ultimately didn’t… In any case, today is the draw, and we will see where this unusual reshuffle, one of many in recent years, will eventually lead. The challenges facing the new ministers are numerous in every ministry, as the government had put down its pencils in recent months. Where to start and where to stop? Geopolitical instability, economic impacts, global liquidity, armament accuracy and integrity in the market, energy costs, new building regulations, arbitrary structuring, justice distribution, private universities, housing crisis, ESY status, transportation issues, delays in major projects, and certainly the shame of Greece’s railways and public transport systems represent just some of the open fronts that old and new members of the government must address. Systems of inflows-outflows at gas stations are irrefutably flawed; discussions about accuracy and integrity in the market highlight the discovery of specialized software used by dozens of gas stations to cheat their customers, bypassing inflow-outflow systems. The scale of the problem underscores the need for the government to ensure the integrity of these systems. It’s a common secret in the fuel market that these inflow-outflow systems are vulnerable to intervention via specialized software, as recently identified by prosecuting authorities. Since the era of the SYRIZA-ANEL government, there has been a plan to ‘lock’ them so they cannot be tampered with. Let’s hope that after the recent scandal, order will prevail. Meanwhile, we’ll try to determine which gas stations closed following the recent inspections will remain shut. From the three-day meeting of foreign ministers from Greece, Cyprus, and Israel, focusing on the third party, Israeli Foreign Minister Gideon Saar stated (among other things) that ‘with friend Trump, we had the opportunity to make things happen…’ and ‘Turkey should be more careful about its views in the region,’ adding that ‘the country helps Iran become a force in Lebanon and fund Hezbollah.’ Assuming the message (from Gideon, obviously) was sent to the recipients and received accordingly. The issue of the Greece-Cyprus-Israel cable has serious implications beyond the specific project, affecting future works within our country regardless. Notably, Turkey’s ‘provocation’ in international waters between Crete and Kasos last summer led to the suspension of operations earlier this month. Now the government seeks a solution through diplomatic channels, enlisting Israel, which may find more receptive ears in Washington. If matters reach a deadlock, Greece risks a domino effect on other major domestic projects. For example, the electrical connections of the Dodecanese and North Aegean islands must also pass through international waters. Should Turkish warships reappear in these areas, they would then block a project connecting two regions of our country. This represents something even worse than blocking a connection with a third country like Cyprus. Regarding the EEZ, much has been written and said in recent days in the media, warranting clarification: Our country does not have ‘sovereign’ rights within the EEZ, which extends beyond six nautical miles from the coast. Based on the Law of the Sea, it only has economic rights, including laying cables, constructing pipelines on the seabed, conducting hydrocarbon research, fishing, etc. Sovereign rights are limited to national waters, treated exactly like the country’s land. By extension, the misuse of this term automatically distinguishes experts from non-experts. Following yesterday’s report on ELBO, today we revisit the topic due to Spyros Theodoropoulos’s initiative for an internal SEV meeting with entrepreneurs and actors in the defense sector. The Friday, February 27 meeting, we learned, was well-attended by industry players. It was decided to form a working group to document collaboration and co-production possibilities with foreign companies, developing concrete proposals to submit to the government. What Northvolt’s bankruptcy means for Greece became evident yesterday when the Swedish battery production giant, struggling financially for some time, finally collapsed. Although the bankruptcy of any company, especially a European one, isn’t entirely welcome, especially given the current EU focus on ‘Made in Europe,’ it validates concerns held by some about battery production prospects. Perhaps one of these was Panos Germanos (Olympia Group), who recently decided to cancel the lithium battery giga factory project in Western Macedonia. This decision upset market circles. While the investment could have generally benefited the economy, particularly in a region heavily affected by unemployment, might it have been worse if it had proceeded and met the fate—or misfortune—of Sweden’s Northvolt? Owners of net metering solar panels faced unexpected changes in contract terms from electricity suppliers, resulting in charges rising from zero to €1,200 per month, significantly eroding any benefit from the solar system. The issue has been raised in Parliament to explain the reasons for the increases and whether they are abusive. Offers exceeding €53 billion for the reopening of ODDHX surprised even Decoder, reaching nearly a quarter of the country’s GDP. More than €53 billion (€32 billion and €21.5 billion) at guidance rates of 4.1% and 4.42%, with the organization drawing €3 billion. Meanwhile, France borrows near the edge, and the US attempts controlled deflation to sell federal debt amid refinancing needs worth $7 billion. Brussels faces another scandal involving Huawei lobbyists allegedly bribing about 15 MEPs. Raids were conducted in Belgium and Portugal offices, with searches at over 20 locations, including Huawei’s Brussels office, investigating active corruption, document forgery, and money laundering in the European Parliament. Traders interpreting Christine Lagarde’s statements note uncertainty in international markets and unconventional tactics from Washington mean the ECB won’t always hit its inflation target. Interest rates may drop to 2% but slower than previously estimated early 2025 in Frankfurt. Higher interest rates mean income for bankers, while the opposite affects businesses borrowing cheaply. France avoided specifying actions if trade war tensions increase inflation, forcing the ECB to raise rates. A deal with Ethniki Asfalistiki is finalized as Piraeus Bank plans a presentation in London for foreign and Greek managers on Monday. The revised business plan (2025-2028) will be presented by Theodoros Gnardellis, with CFO analysis showing a 1% boost in return on equity, proportionally increasing earnings per share. During Morgan Stanley’s financial roadshow (18-20), executives from the four systemic banks will attend. Trading volume reached €247 million, with €185 million in bank shares, marking the fourth consecutive session above €150 million, totaling over €650 million Monday-Thursday. Aegean Airlines saw a reversal from €10.85 to €11.37 after foreign fund purchases ahead of Q4 2024 results and dividend announcements. Germany debates loosening debt brakes amidst fiscal controversy, while France hits a 14-year record in borrowing costs amid potential Fitch Ratings downgrade. Costs include German 10-year at 2.850%, French at 3.554%, Spanish at 3.492%. Athens aims for a European average defense spending with simultaneous escape clauses for all EU countries.
Challenges for New Ministers: Israel’s Aid in the Trump Era, SEV Initiative for Domestic Defense Industry, and New Brussels Scandals
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