Hello, There’s No Time for Naïveté

Hello, it would be extremely naïve—if not outright reckless—for any government in Europe, especially after the Munich summit, to focus on anything other than the seismic shifts heralded by U.S. Vice President Vance’s statements and what they might mean for the global community. About a month ago, a source who had privately spoken with the top brass at the PM’s office told me (and I reported it here) that the Prime Minister was particularly worried about Greek-Turkish relations, especially in light of the new Trump administration. Then, the Tempi rally took center stage, and the country, in a way, shifted its agenda. And it makes sense—naturally, Kyriakos Mitsotakis understands the gravity of this global development, but he also cannot ignore the risk of his government being destabilized by the Tempi case. As for Tempi, nothing new is expected this week except for the official police report on the video evidence. However, as long as the opposition—along with the usual suspects and their troll army—keep dragging it out with lines like “Let’s take the law into our own hands”, calling judges traitors, and throwing around threats of gallows and prison sentences for everyone (with Androulakis even chiming in for support), it will only end up benefiting the government.

And Now, We Run

Back to the serious matters unfolding on the international stage. The key message that EU Foreign Ministers (including Gerapetritis) received from High Representative Kaja Kallas was clear: “We need to step on the gas for Europe’s autonomy.” Kallas had met with U.S. officials in Munich in the preceding days. At the morning briefing held yesterday at the Bayerischer Hof hotel, she explained that while the Americans mean what they say, it remains unclear what exactly they intend to do in practical terms. For Europe, however, this is the moment of truth—something reflected in Gerapetritis’s meetings with other Foreign Ministers (from Croatia, Austria, Denmark, etc.) as they tried to decode the new geopolitical landscape taking shape before us. In the coming days, Gerapetritis will travel to the U.S. for meetings related to the UN Security Council. However, a meeting with the new Secretary of State, Marco Rubio, is not on the books yet, as he is heading to Saudi Arabia with Trump’s negotiation team for talks on the Ukraine war.

Weimar+

In this climate, Macron is bypassing the European Commission and has called a meeting in Paris today with the countries supporting Ukraine to analyze the emerging new realities. Greece was not invited—and understandably so, as it does not play a primary role in providing substantial support to Ukraine. The Weimar+ format includes Germany, France, and Poland, along with Italy, the UK, Spain, and, more recently, Denmark. The interesting part? Macron completely ignored Ursula von der Leyen and European Council President António Costa.

Sakellaropoulou’s Farewell Dinner

Less than a month remains until Katerina Sakellaropoulou steps down, and she has already started organizing her departure. She is setting up her new office on Akadimias Street and transferring her books from the Presidential Mansion. This Wednesday, she is hosting a farewell dinner for the journalists covering the presidency—at Mavros Gatos in Pangrati. In the coming days, she will make her final public appearances before handing over the office to Kostas Tasoulas.

Olga’s Rugs Are Back!

You must remember the whole rug saga at Olga Kefalogianni’s office in the Ministry of Tourism—the ones from Despina Moiraraki, valued at €18,000. You probably also recall the uproar it caused last September, with the government spokesperson’s holier-than-thou statements about “being mindful of every euro spent in ministries, because we are all just passing through”, which led to the purchase being shelved—temporarily, as it turns out. Well, surprise, surprise—the decision resurfaced a few days ago, and the rugs were finally bought, still with public funds. No word yet on whether the minister has already laid them out in her office. As you can imagine, either we don’t understand how this works, or they’re just straight-up mocking us. And for the doubters—here’s the official decision from the Ministry of Tourism dated 30/1/2025.

Piraeus Bank: Roadshow in New York This March – What’s Happening with the Insurance Deal?

It’s all hands on deck at Piraeus Bank, as every front remains wide open. On February 24, the bank will release its financial results, and they need to have all the answers ready for analysts in the follow-up conference call. Meanwhile, they are preparing for a major roadshow in New York to present their revised business plan to international investment banks. This is set for the first week of March. Of course, what investors care about the most is consistency in dividend distributions—everything else comes second. As for National Insurance, estimates suggest that the entire process will be wrapped up by the end of March. Assuming no unexpected surprises, Piraeus Bank and CVC will finalize their bilateral agreement on all matters. However, completing the acquisition of 70% of the company will take several months, with expectations that it will be done by year’s end.

The Hyperfund Puzzle Takes Shape

Over at the Hyperfund, as you may know, there’s a new CEO—Giannis Papachristou—whose four-year term officially begins on March 4. Next up, the Corporate Governance Council of the Hyperfund will soon meet to decide on the fate of Panagiotis Stamboulidis, head of the Strategic Contracts Unit (PPF), which has now been incorporated as an independent department under the Hyperfund. Final decisions on the new Board composition, organizational chart, and other internal matters are expected soon. Meanwhile, D. Politis and Gr. D. Dimitriadis—who were shortlisted for the CEO position but were ultimately not selected—are finalizing their next career moves.

Supermarket and Food Company Meeting on Prices

Today at 1 PM, representatives of the Greek Food Industry, supermarkets, and multinational companies selling basic goods in Greece will gather at the office of Development Minister Takis Theodorikakos. With the classic carrot-and-stick approach, the government will push for a six-month freeze on prices for basic food and essential goods. This comes at a time when prices for cocoa, chocolate, coffee, and juice (especially orange juice) have hit record highs due to special circumstances. Meanwhile, EU bureaucracy is forcing Dutch farmers to withdraw cows from production to reduce their carbon footprint, which, of course, affects beef and milk prices. Against this backdrop, the government is trying to persuade market players to hold off on price hikes, even if that means slightly reducing profit margins, to keep food inflation at zero. At the same time, market inspections are ramping up, guided by a new Code of Conduct aimed at preventing misleading discounts and promotions.

Competition for a Floating Bar in Faliro

A rather unusual competition is coming up from the Public Properties Company (ETAD): They’re offering a concession for the right to use a sea area in front of Zone III of the Olympic Complex in Faliro—for anchoring a ship or floating structure to operate as a food and beverage establishment. The electronic auction will take place on www.e-publicrealestate.gr, with the submission deadline on February 24.If a ship is used, it must remain permanently anchored and serve only as a restaurant/bar.The initial lease duration is one year, with an option for extension, and the starting bid for the minimum annual rent is set at €50,540 per year.

A Defense Business Deal in Abu Dhabi with a Greek Touch

Raymetrics S.A. is a Greek high-tech company that develops and manufactures LIDAR (Light Detection And Ranging) remote sensing systems. It sells its products in 40 countries (accounting for 82% of its revenue), and its innovative LIDAR technology allows for the collection of highly accurate altitude data for meteorology, environmental monitoring, defense, and industry. It is the only Greek company among 2,600 companies from all NATO member states participating in the DIANA (Defence Innovation Accelerator for the North Atlantic) program for 2025. This afternoon, Raymetrics’ President and CEO, Nikos Kondos, is signing a strategic agreement in Abu Dhabi with Key Technologies, the largest defense materials company in the United Arab Emirates. The two companies will manufacture the new “ASTERIA” system, designed to prevent mass drone attacks and illegal activities, protecting borders not only in the UAE and Europe but across the entire world.

What Will Declan Costello Say?

On Wednesday at 2 PM, the European Commission’s representative in the former “troika of institutions” that supervised the Greek economy during the bailout years will present, together with IOBE, his observations and forecasts regarding the much-discussed “change in the development model” that Greece needs to escape its sluggish growth rates and achieve the necessary “convergence leap.” Sources indicate that the growth rate forecast for this year is close to +2.5%, but from next year, it is expected to slow down, aligning with IMF projections, which have repeatedly pointed out that, under the current development model (driven by consumption, tourism, and shipping), Greece will remain trapped at +1% to +1.5% growth. This “pale growth” has long been a concern for Costello.

US Holiday – The Athens Stock Exchange Tests Its Strength

US markets will remain closed today due to Presidents’ Day, but in the Athens Stock Exchange, investors will see if the market can climb even higher. The sentiment remains positive, fueled by hopes for an end to the war in Ukraine, while listed companies are preparing to announce their 2024 financial results, which are expected to be strong—as evidenced by Coca-Cola’s performance. Against this backdrop, eight of the nine stocks in the large and mid-cap categories that reached multi-year or all-time highs continued their upward trajectory—except for National Bank, which dropped -2.1% after correcting from a 9-year high. Coca-Cola HBC and OLP hit new record highs at €38.68 and €33.6, respectively. GEK TERNA surpassed €19 for the first time in 25 years. Public Power Corporation (PPC) and AVAX climbed to 15-year highs. Alpha Bank extended its 5-year record, while Piraeus Bank reached a 4-year peak. Sarantis established itself above €12, refreshing its 7-year high, while ADMIE replaced National Bank in the “record club,” locking in a historic peak of €2.85. A sign that the Athens Stock Exchange is gaining size and depth is that it now boasts eight listed companies with a market capitalization exceeding €5 billion (Coca-Cola 3E, Eurobank, National Bank, OPAP, OTE, Piraeus Bank, Metlen, and PPC). Additionally, 24 listed companies have a market cap above €1 billion, making them prime targets for more mature and long-term institutional investors. A year ago, JP Morgan advised the Athens Exchange to remain in the emerging markets category, as moving to the “mature” capital markets category requires at least 5-6 companies with a market cap above €5 billion. So far, the Athens Exchange has completed eight consecutive weeks of gains, with the General Index up +9.16% since the start of the year. However, this growth seems more balanced:

• Banking Index: +12.90%
• FTSE 25: +9.92%
• Mid-Cap Index (FTSEM): +9.38%

The total market capitalization increased by €3.195 billion in one week, reaching €112.667 billion. Since the beginning of the year, it has grown by €9.521 billion.

The Two Debt-Ridden Gladiators

Donald Trump says it bluntly: the biggest rival of the US is China. The Chinese “steal our technology” and expand into global markets by “dumping” prices. The problem for everyone else? These two gladiators, fighting for economic (and more than just economic) dominance, are both drowning in debt. China’s total debt-to-GDP ratio is at an unprecedented high of around 370%. It has doubled in the last 14 years. On top of that, there’s the massive uncharted private debt hidden in the “shadow banking system,” meaning financial activities taking place outside the traditional banking sector. The US isn’t doing any better. Public debt has reached $36 trillion. The deficit stands at 7.2%, and just for 2024, the US government had to borrow over $840 billion just to pay interest—not even the debt itself. The public spending cuts initiated by Elon Musk are merely a drop in the ocean of US debt. That’s why the 10-year US Treasury bond pays an interest rate of 4.6%, compared to Germany’s 2.47% and Greece’s 3.30%. The bottom line? These two superpower gladiators aren’t just fighting for supremacy—they are fighting for survival.

Elon Musk Lays Off Workers, Washington’s Housing Market Collapses

Elon Musk’s public spending cut program has been in effect for just ten days. Already, about 70,000 public employees have lost their jobs. The Wall Street Journal reported that 65,000 federal employees have accepted Musk’s offer to resign voluntarily and receive a salary until September. Fox News reported that 3,600 trainee employees in Health and Social Services have already been fired by the DOGE. Suddenly, these layoffs have triggered a collapse in Washington’s housing prices. The average home price in Washington, D.C. has dropped by around $139,000. Over the last month, more than 4,000 homes have been listed for sale in and around Washington. In November 2024, the average home value in D.C. was $700,000 (according to Redfin). Today, the average purchase price has fallen to $560,000—a 20% drop in just 100 days. Currently, 8,000 homes are listed “FOR SALE” in the D.C. metro area. In Virginia, home listings have surged by 60% compared to last year, with half of them hitting the market in the last 30 days alone. And all of this happened during winter. Traditionally, the housing supply increases in summer.