Economy

Michalis Sallas: Europe is entering a period of stagnant inflation

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Inflation and possible intervention tools, accuracy, elections, but also flexibility of Greek banks in terms of financing to the medium entrepreneur were the main issues that occupied his discussion. Michalis SallaPresident of Lyctos Group with Action24 journalist Stamatis Zacharos, at the 7th Delphi Economic Forum.

Taking the floor first, Michalis Sallas spoke about the economic characteristics of today, leaving the pandemic and entering energy crisis to signal price pressures, resulting in an increase, however, as he pointed out, the next period will be even more difficult, as stocks run out and new ones will come at different, even higher costs.
At this point, he pointed out that the appropriate way for the state to intervene is, in principle, to subsidize the business units that have the first cost production, so as not to pass on the increases to the consumer and to contain the costs.

In relation to inflation noted that all features at this time indicate that Europe is entering a period of stagnant inflationwith a decrease in GDP and an increase in prices, while its forecast for our country is that it will move at a rate of 8% or more this year.

With regard to the initiative to regulate the situation, he stressed that the European Union has the tools at its disposal and must realize that it will have to take special assistance measures in countries with import sensitivity, but an obstacle to this can be the bureaucracy.

At the same time and in view of the coming electionsMr. Sallas declared himself a fanatic of supporters of autonomous governments, as in cooperative governments it is difficult to reach an agreement and a completely different approach to the different issues that arise resulting in delays in resolving them.

He also emphasized the role of Greek banks in the development of entrepreneurship, especially medium-sized enterprises, emphasizing that they can have a positive impact on it, through financing not only large companies with a turnover of billions, but also smaller companies. with export potential, especially in the Region.

“Greek banks should enter into the logic of commercial banking. “The big deficit of Greece is that the banks have been deprived of the knowledge of commercial banking”, he noted.

Concluding, he said he was optimistic about the next period in the Greek economy, adding that the business community should put pressure on it to meet its demands.

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