Political Vacuum Brings Challenges: Zoi’s Rise, DELSA’s Complex Contracts, and More

If Zoi (There is only one Zoi) didn’t exist, Mitsotakis would have had to invent her. Recently, the column criticized those in New Democracy who are conducting a rather superficial analysis suggesting that Mitsotakis alone benefits if the dilemma ‘Kyriakos or Zoi’ solidifies. We noted then how impressive it is for those agreeing with this analysis to trust in the ‘wise’ judgment of the Greek people. The column apologizes—not because we believe our view was wrong, but because ultimately Zoi is so useful to Kyriakos that if she didn’t exist, the prime minister would have had to discover her. What Zoi, President of Liberty Sailing, said about Alexis Tsipras is something not even the most fanatical New Democrat would say. Her alleged anti-system antics (from a super-systemic family, let’s not forget) might attract hardcore anti-government fanatics, yet they chill the moderate center. Thus, the label ‘Party of the Temples’ now logically includes ‘Party of the Drachma.’ What more could a prime minister ask for? No system can be as systemic as an anti-systemic party. Meanwhile, as we analyze the phenomenon of Zoi, Konstantopoulou increases her poll numbers, helped by the continued discrediting of SYRIZA and concerns over PASOK’s direction. Clearly, from Androulakis’ sharp reaction to SYRIZA’s flirtation, the PASOK president realizes that identifying with parties—fragments of the once-powerful SYRIZA—isn’t leading him down good paths. Traditionally, PASOK’s privileged space was the broader center, and the tactics of recent months weren’t the most advisable. The political vacuum runs horizontally and vertically through the system. For example, there is much discussion about where Dendias is heading, who will support him next (still unknown when this day will come), how Hazidakis or Pierarakis will respond, and what Adonis (the one and only) will do. Outside New Democracy, efforts focus on creating issues within it—that’s their job after all. Inside New Democracy, how is all this work perceived? The DELSA of YEHA and the factory of many small contracts. Energy savings in public buildings has occupied at least the last decade of successive Greek governments. Lack of resources and inability to mature related projects pose serious obstacles. Take the Ministry of Defense, which last year decided to propose to the European Commission, titled HESTIA, to secure funding for maturation studies of energy-saving projects in many buildings. The 1.3 million euro project HESTIA was approved by the Commission and was the first pan-European infrastructure for defense! However, under the shadow of political leadership, although building selection had begun, everything froze last month. All stopped! The responsible service informed its partner that ‘operational needs’ had changed. They told them they suffered unnecessarily for months to find the 1.3 million euros. At DELSA (General Directorate of Economic Planning and Support), they recently discovered they don’t need partners and have internal expertise for project maturation. Interestingly, the same service constantly assigns such studies to specific contractors using state budget funds instead of EU funds. Hundreds of thousands of euros have been spent sometimes for the same or similar study. Perhaps the leadership of the ministry should look into this matter more closely. The positive climate for hydrocarbons and delays. The column does not wish to disrupt the festive atmosphere surrounding hydrocarbon exploration following Chevron’s interest in two offshore areas south of Crete, precisely where issues with Ankara due to the infamous Turko-Libyan Memorandum exist. Chevron’s move, now becoming the largest player in Greece’s Independent Economic Zone (IEZ) with three concessionary offshore areas, is significant. However, it is reported that the other American company, ExxonMobil, which holds two offshore areas south and southwest of Crete, has officially requested an extension for exploratory drilling. Has this request been submitted to the relevant authority, EDEYEP? Is it confirmed? If so, we have an issue since these two areas are mature for seismic surveys and drilling could proceed. We’ve waited almost ten years! Why nuclear power plants won’t happen in Greece. Much is written about the revival of nuclear energy globally, including large units and so-called small modular reactors. Reality, however, is different. So far, no real new project is being implemented as investors refuse to commit their money convincingly. The sole exception is the restart of certain old units in the USA. This was stated yesterday by Deputy Minister of Energy Nikos Tsafos, sending a clear message that the issue for Greece isn’t just public reactions but that nuclear energy isn’t competitive. Consequently, such an option isn’t currently under consideration for our country. Loans…not borrowing. Bank administrations plan to issue new loans this year exceeding 11 billion euros. Roughly the same is estimated for 2026 according to information given to managers and analysts. In 2024, loans to businesses increased—including 2-3 major syndicated loans—for 2025, there’s a shift towards households. Loan growth significantly impacts revenues (profits, capital distribution to shareholders-investors). A ‘thorn’ emerges with the changing attitude of an increasing number of individuals. Regarding housing loans, without ‘My Home II,’ results would be minimal. But again, allocations haven’t started yet. Interested parties may have received initial approval after relevant assessment checks, but either allocated amounts are limited or sale prices are so high that participation isn’t sufficient. In 2024, out of total transactions in the broader real estate market of 26 billion, housing loans used were less than 2 billion. Likely, in 2025, they’ll be more, mainly thanks to ‘My Home II,’ but still modest. Many avoid borrowing like ‘the devil avoids incense.’ What about Foreign Direct Investments? Concerning Foreign Direct Investments and the high percentage regarding Golden Visa, the column has mentioned it before—it’s not new. Now, complaints openly come from domestic entrepreneurship factors. One is Spyros Theodoropoulos, who notes investments aren’t continuing at the good rates of previous years. ‘No factories are built in Greece, no greenfield projects.’ The reason is that we don’t have a convincing answer to ‘why invest in Greece and not go to a neighboring country?’ said the SEV president recently. Similarly, Dimitris Papalexiopoulos and Giannis Stournaras echo this sentiment. Investments from DEH. From this perspective, George Stassis’ announcement about creating a mega data center turning Western Macedonia into a pan-European hub for data centers is welcomed. According to the group’s managing director, a strong driver providing the massive energy required for these large-scale investments will be the conversion of ‘Ptolemaida V’ from lignite to a natural gas unit. The roadmap foresees closure by the end of 2025 and conversion to a 350 MW open-cycle natural gas unit by early 2027, with potential capacity increase to 500 MW. April baptisms of Elpedison. In mid-April, HelleniQ Energy’s management is expected to proceed with the unveiling of the ‘new Elpedison.’ From rebranding and corporate identity to operational planning. Andrea Siameesis and his close collaborators personally oversee the entire project to present a completely new company. Presumably, the new logo will include HelleniQ (indicating 100% group control/HelleniQ Energy) and the second composite hasn’t been finalized yet. Close harmonies, though… What’s Nikos B. Bardinogianis preparing? With new highs and increased trading, Real Consulting shares see their main shareholder gradually expanding free float of the IT company’s share capital, clearly aiming for broader participation and other strong entrepreneurial/investment players. Over the last two weeks, he has sold shares amounting to approximately 15% of the equity, likely part of broader free float expansion. Around 7% has long been held by Ambrosia Capital of Anastasios Astyfides. Valued at 94 million euros, surpassing 100 million is probable, and an application for transfer from the Alternative to the Main Market is anticipated. The active Mr. Astyfides. Among the most active fund managers of the ‘new generation,’ Mr. Ambrosia Capital, since moving his main activity from London to Athens, has made several successful placements in listed companies, participating in capital increases (Intralot, Lavipharm), acquiring significant minority stakes (Real Consulting), or combining both in 2-3 other cases. Marousi changes face. Marousi is at the heart of extensive construction activity with new office complexes developed by major real estate companies like Noval Property, DIMAND, and Brook Lane Capital, contracted to Terna. Notable projects include ‘The Grid,’ a business complex covering 61,500 sqm, featuring four buildings around a large interior green space, aiming for LEED Platinum and WELL certifications. Also underway is Noval Property’s three-story wing on Himarra Street, totaling 20,500 sqm, targeting LEED Gold certification. Additionally, the new Technical Chamber of Greece (TEE) building, spanning 24,857 sqm, is rising in collaboration with Medical Center, GEK Terna, and DIMAND, aiming for LEED Gold certification as a modern bioclimatic structure housing TEE activities. Ready is the PWC Campus, a modern 25,000 sqm office complex consisting of two identical four-story elliptical buildings, a DIMAND development constructed by Terna, already recognized as a benchmark for the area and aiming for LEED and WELL certifications. Freeze on new subsidized employment programs. Off-agenda is the proposal publicly submitted by Commission experts mid-month for 60,000 beneficiaries. Responsible officials at the Ministry of Labor reportedly stated that during their recent visit to Athens, institutions did not place such a proposal on the table. These same officials expressed surprise at its content and primarily its fiscal cost (at least 290 million euros), given that every spending proposal must be accompanied by a proposal for necessary savings. Note that annual costs for the Guaranteed Minimum Income reach 510 million euros. Cuts in social spending, strategic readiness exercises, and (furthermore) rise of the far-right… It’s simple to say that announcing measures to limit the fiscal gap creates room for 14 billion pounds, especially when the larger portion concerns social spending and proportionally smaller government expenditures. Read also the Commission’s warning about strategic readiness plans, among others, in case of extreme disturbances (according to Politico) and question why they might (pre)pare. In Germany, post ‘debt brake’ approval, AfD surges (poll-wise) to historic highs. On the edge Lagarde stands poised. Great debate in Frankfurt centers on R-Star, the so-called ‘neutral interest rate’—cost (in a loan) neither increasing nor decreasing the value of a product—dynamic based on conditions. ECB board member estimates vary; some place it at 2.5%, others at 1.5%. Practical implications range from businesses to individual borrowers. Annual ECB meeting is May 6 in Setubal, Portugal, and June 4 tactical session in Frankfurt. Bond queue. Borrowers line up for bond issuance pre-April 2, the date U.S. President lifts tariffs. More than 40 borrowers hit the European primary market this week so far, most in three days since January, per Bloomberg data. Credit market frenzy in Asia-Pacific with over a dozen issuers promoting or announcing dollar bonds Monday. In the U.S., the week began with 16 investment-grade companies exploiting constructive tones and pricing over 24 billion dollars across 30 tranches.