Government on High Alert Due to Middle East Tensions: Inflation and Accuracy Hit Greece

The Greek government is closely monitoring the rapid developments in the Middle East with great concern. A generalized conflict could have uncontrollable consequences for both the European and global economies, with painful repercussions for the national economy. As tensions escalate and the risk of war intensifies, fears in Athens grow. If the conflict persists beyond 7-10 days, the budget could be at risk, warns a senior government source. The Prime Minister’s Office and relevant ministries are on high alert, planning strategies for every possible scenario. Immediate effects include rising inflation, increased prices, and revaluations. The spike in international oil prices due to potential blockades like the Strait of Hormuz poses serious challenges. Higher production and transportation costs will lead to increased inflation, affecting households and businesses alike. Additionally, sectors such as shipping, tourism, and energy face significant disruptions. Prime Minister Kyriakos Mitsotakis emphasized the need for restraint and diplomacy, underscoring the importance of regional stability. Greece’s strategic alliances, including energy partnerships with Israel and Cyprus, are now under scrutiny. Heightened security measures are also being implemented nationwide, particularly around Israeli and Jewish targets.