Greetings, well, it’s well-known that when K.M. takes charge of something, he doesn’t make mistakes or do sloppy work. That’s what happened yesterday during the budget discussion, where the measures he announced for the banks outshone any proposals from the opposition. But he also gave a social touch by imposing a “mandatory donation” of 100 million euros from the banks to support school infrastructure.

Over 300 million euros on the tab

So, Kyriakos Mitsotakis took things a step further and caught the bankers off guard with yesterday’s announcements. On fees for basic transactions (bill payments, dealings with the public sector, etc.), we’re looking at a complete elimination—not mere reductions, as initially expected. This is estimated to cost banks about 120 million euros annually, alongside the ENFIA (property tax) adjustment, as the Prime Minister mentioned legislative provisions to make this permanent. Add 100 million euros for the body that will manage properties of vulnerable borrowers and another 100 million for funding the renovation and construction of new schools, and the ENFIA adjustment. Altogether, the bill handed to the banks yesterday amounts to approximately 320 million euros.

Listening to the MPs

K.M.’s announcements, such as covering pharmaceutical expenses for low-income pensioners and granting a hazard allowance for uniformed personnel, were initially proposals from New Democracy MPs. Back then, they were labeled as “rebellious” initiatives, but the Maximos Mansion didn’t “criminalize” the suggestions. Instead, it processed them and is now implementing them. This way, the government showcases tangible actions, and the MPs can boast to their constituents that they influenced governmental decisions.

Whining…

The other day, there was a technical failure on a Thessaloniki Metro train. Passengers were inconvenienced, having to walk along the tunnel’s emergency corridor, which is specifically designed for such situations. The whole power outage lasted about 90 minutes, but the actual inconvenience for passengers was much shorter. Nobody truly claimed there was any risk to people because the power cut affected a Metro train. Yet, in Parliament, PASOK, SYRIZA, and the New Left (especially Haritsis, who pretends to be “modern”) raised a huge fuss. Honestly, I don’t think there’s another country in Europe where the opposition collectively blows up over a power cut in a single train on a completely new Metro system (and therefore bound to have some technical glitches). We’re talking about sheer ridiculousness!

Who would believe them?

Six months ago, on a Sunday afternoon in early summer, the public was bombarded with reports about the arrest of a well-known TV lawyer who had almost beaten his wife and mother of his children to death. Initially, there were absurd excuses he gave during the investigation—claims that she “fell down the stairs”—but soon, under pressure from the police and investigators, she revealed the horrific truth. There was explosive media coverage for a few days. The coroner’s report revealed brutal beatings (17 punches to a woman’s face!). There were also dubious claims of psychiatric issues, and eventually, the whole thing faded out of the spotlight. Fast forward six months—before the year even ends—and this monster of a lawyer is appearing on TV shows as an angel. Look, here’s his new home, his new partner, and praise for his severely beaten ex-wife as a good mother, and so on. And life goes on. Now, you tell me: with a government that boasts laws against domestic violence and a justice system like ours, can anyone believe that things are improving in this country? Rot and corruption, or just the overwhelming sense that, in the end, everything here gets swept under the rug and left “half-resolved”?

ESM and SSM discussions about National Bank

We still don’t have any progress on the issue of abolishing the Public Sector’s special rights in its 8.4% stake in the National Bank of Greece. The delay didn’t come from the Finance Ministry or the HFSF (Hellenic Financial Stability Fund). From the Greek side, all procedures are complete, and the delay stems from discussions between the ESM and SSM. The SSM doesn’t oppose abolishing the special rights, but the ESM wants to handle the matter in a way that fully safeguards their interests. So, it’s just a matter of time.

The billionaire struggling with… financial constraints

Financial constraints—let’s put it politely—are plaguing the billionaire (?) Beny Steinmetz, also known as the “diamond king.” Word in the market is that he sold one of his two mines in Guinea (the operational one), as well as the nickel plant he owned in Skopje. Regarding the refinery in Italy, which even got the attention of the Financial Times, it was eventually bought by shipping magnate G. Economou because Steinmetz couldn’t come up with 140 million euros at the time. I’m telling you this to keep you informed since Greece doesn’t have many billionaires, and Steinmetz is one of them. Aside from being the diamond king, he’s also the king of arrests at airports (Israel, Cyprus, etc.), thanks to warrants against him. So, he’s spending his time in our country—not that he’s suffering, as he splits his days between a residence in Vouliagmeni (owned by a well-known Greek businessman) and his yacht.

The regional airports packaged together

Ultimately, the 22 regional airports will be granted as a single “package” to one operator. These airports will be released from the Hellenic Corporation of Assets and Participations (HCAP) for concession via an international tender in the first half of 2025. Advisors for the tender have already conducted on-site inspections of the airport cluster (Karpathos, Chios, Alexandroupolis, Araxos, Limnos, Ioannina, Milos, Naxos, Paros, Ikaria, Kythira, Leros, Sitia, Nea Anchialos, Kalymnos, Skyros, Syros, Astypalaia, Kastellorizo, Kastoria, Kasos, and Kozani) to assess their current condition and identify needs to structure the tender framework. There is also consideration for some of these airports to be utilized for cargo transport or charter flights. Additionally, there is an intention for HCAP to retain a stake in the airports, similar to the Kalamata airport case. However, some issues remain unresolved, such as matters involving the Civil Aviation Authority (CAA), though HCAP estimates that the concession process will be completed by the end of 2027.

The €765 million PPP for the prisons

In April, bids are expected to be invited from interested companies for the major €765 million Public-Private Partnership (PPP) project involving the relocation of Korydallos prison to Aspropyrgos. A prerequisite is the approval of the environmental terms. A positive development is the recent approval of a special urban planning framework. The project, managed by the Recovery Fund’s Maturity Unit on behalf of the Ministry of Citizen Protection, involves partnering with a private entity for the design, construction, and maintenance of the facility for up to 30 years. Interest has been expressed by companies such as GEK Terna, Mytilineos, Aktor Concessions, and Avax, with the competitive dialogue nearing completion. The prisons will be relocated to a 100-acre property at the site of the former “American Convenience” military base in Aspropyrgos. The new premises and infrastructure for the modern Judicial Correctional Institution of Athens (JCIA) and the Attica Court Transfer Directorate (ACTD) will be located on the site of the old NATO base.

End of an era

Last year, Allianz stated that Christos Georgakopoulos, the founder of European Reliance, would remain a member of the board and an administrative advisor. However, his departure from the board of European Reliance-Allianz has quietly marked the end of his tenure. Tensions had arisen anyway, stemming from cultural differences between the German insurance giant and the Greek company.

ADMIE board’s term extended

Before the stock market opens today, ADMIE (the Independent Power Transmission Operator) will close the cycle of announcements for its nine-month results. Although the third-quarter financials are being released in mid-December, significantly late, they maintain expectations for a distribution of the remaining €14.5 million in dividends in September, along with the pre-dividend of €13.5 million. However, the key highlight is that by this time next year, the electrical connection between Attica and Crete will have been completed, generating an additional €770 million in annual revenue for ADMIE. Following the publication of the nine-month financial statements, a letter will be sent to shareholders regarding the renewal of the current administration’s term, resolving the final pending matter of the year.

ECB halts bond purchases starting today

Starting today, the European Central Bank (ECB) will permanently cease repurchasing bonds issued under the Pandemic Emergency Purchase Program (PEPP). This marks the ECB’s withdrawal from the European bond market as the largest buyer of eurozone countries’ debt. The ECB launched PEPP in March 2020 following the outbreak of the COVID-19 pandemic, reaching a peak portfolio of €1.72 trillion two years later. Bond reinvestments were scaled back in July and officially end today, as the ECB wraps up for the holiday season. From now on, each issuer of debt—i.e., each individual country—will have to manage market fears and expectations, which will dictate the pricing of their bonds. The biggest challenge will likely be faced by France, where 52% of its public debt is managed by foreign investors and funds. France’s public debt already stands at 118% of GDP, and Paris will be seeking more than €300 billion (!) in 2025. Greece, on the other hand, appears to have managed its situation, with the €8 billion it needs to borrow next year not expected to pose a problem. The Public Debt Management Agency (PDMA) has planned only two new short-term bond issues and 10 re-issues on agreed dates.

Industrial parks

The prepayment (40% of the subsidy) from the Recovery Fund has been disbursed to ETBA Industrial Parks S.A. for the business plan aimed at developing industrial parks.

Arab Investors in the Greek Startup elvoX Automotive

elvoX automotive | mobility | technology is a Greek startup that designs and develops electric commercial vehicles—vans. Based in Acharnes, the elvoX team is striving to bring electric innovation to the commercial vehicle market. Reports suggest that this Greek startup has already attracted the interest of angel investors, mainly from the Middle East, for the development of its pioneering electric vehicles designed to meet the needs of urban and suburban professional transport, with the potential for future autonomous operation. Foreign investors are using Greece as a pilot “entry point” for research and development, prototype completion, and—if all goes well—the initiation of electric van production in Greece for the European market.

Wall Street: Insiders Are Selling Stocks

Last Friday, the Dow Jones Industrial Average fell by 86 points (-0.2%), marking its 7th consecutive session of losses. This is the longest losing streak for the blue-chip index in nearly five years. This is happening during a period of general stock market euphoria on the other side of the Atlantic, where 46% of investors predict further price increases. However, at the same time, there have been record stock sales by major shareholders of Wall Street’s “champions.”

For example, Jeff Bezos of Amazon sold $1.25 billion worth of his company’s shares in November. In total, in 2024, Amazon’s founder and his close associates sold $12.5 billion worth of shares. Last week, Mark Zuckerberg liquidated another block of Meta shares worth $153 million. In 2024 alone, Zuckerberg sold shares of the company he founded worth approximately $2.4 billion. Meta is now valued at over $1.5 trillion for the first time in history, and the S&P 500 index appears poised to end the year with annual gains of around 24% or more.

Meanwhile, top executives at NVIDIA have also announced stock sales worth $1.85 billion this year. A total of about 11 million NVIDIA shares have been sold since the start of the year, the most of any single company. Jensen Huang, NVIDIA’s CEO, revealed he sold 6 million shares. The question remains: who knows better? Those selling shares of the companies they lead, or those buying them?

Powell’s “Obligation” to Lower Dollar Interest Rates

The Federal Open Market Committee (FOMC) of the FED will conclude its two-day meeting this coming Wednesday. Markets have already priced in a quarter-point reduction in the federal funds rate. Things will get more interesting next year, with less consensus on how the FED should address persistent inflation amidst concerns about economic growth. But that’s a problem for next year. For now, investors have the holiday season to look forward to.

The Bank of England and the Bank of Japan will announce their monetary policy decisions on Thursday. However, Jerome Powell’s problem is much more complex. Currently, the average interest rate on U.S. government debt is 3.4%, the highest since 2008. The U.S. government is paying heavily for its borrowing. Over the last two years, U.S. debt interest rates have more than doubled.

About $6.4 trillion of U.S. debt is in treasury bills with an average interest rate of 4.7%, while $14.4 trillion is in government bonds with an average interest rate of 2.8%. In reality, the total net interest cost reached an annualized record pace of $1.1 trillion in the third quarter of 2024. The U.S. government is spending $3 billion EVERY DAY just on interest payments. This may very well be the only reason Powell feels compelled to reduce dollar interest rates…