It is expected that the increase in estimates of the growth of the Greek economy will cause state stability in Greece if the second round elections has a similar picture to the first one, which leads to the formation of a very strong government with a very small probability of destabilization within four years, notes Moody’s Analytics. According to the House, Kyriakos Mitsotakis’s goal is to win at least 180 seats in parliament, which will allow him to make important and positive changes to the Constitution in the future.

In more detail, as noted by the company’s economist and deputy head, Michalis GrammaticopoulosSunday’s elections resulted in a clear and decisive victory for the ruling New Democracy party, with Prime Minister Kyriakos Mitsotakis recording an unprecedented 20 percentage point lead over the mainstream opposition. By the second round of elections at the end of June, Mr. Mitsotakis will have the first picture of GDP for the first quarter, which could become an important “trump card in the hole” if the chamber’s growth forecast is confirmed3. 7% in Greece in the first quarter of 2023 compared to the corresponding quarter of 2022.

“Political stability, international recognition of new structural reforms and an exceptional first quarter of the tourism season will have a positive impact on growth in 2023 and will likely prompt an upward revision to our key estimates for the third and fourth quarters of the year.” , as Moody’s Analytics adds. Under these conditions, Greece’s yield curve will become less steep and the debt-to-GDP ratio will decline, creating the necessary fiscal space for further tax cuts and a possible increase in the minimum wage, he said. Additional foreign investment and a further reduction in red tape will greatly help employment and allow Greece to record medium-term GDP growth above its potential, the House of Representatives said.

According to Moody’s Analytics, Kyriakos Mitsotakis will move to the second round of elections with the goal of winning at least 180 seats in parliament, as this will allow for future constitutional amendments that will strengthen the country’s prospects. In particular, as Mr. Grammatikopoulos notes, this strong majority gives, for example, significant chances for the repeal of Article 16 of the Greek Constitution, which currently prohibits the operation of private universities in the country. This would mean a huge step towards the openness of the Greek education system and the Greek economy. “As long as the government provides incentives and creates an environment that welcomes international students, while continuing to develop public education through structural reforms that will improve university rankings, the outcome will be net positive,” the economist stresses.