Macro roundup: PEPP relief for Greece
The ECB will use cash reinvestments as a tool to counter financial market stress
The key piece of macroeconomic news for Greece this week was that the European Central Bank said it could, “under stress”, reinvest cash from maturing assets under its Pandemic Emergency Purchase Programme “flexibly across time, asset classes and jurisdictions”.
So maturing bonds from other euro area states can be rolled over into purchases of Greek government bonds after March, when overall net additional purchases under PEPP come to an end. The big question for the country's bonds is how wide the spreads between yields on Greek and German government bonds would get before the ECB deems financial conditions to be “stressed”. But the ability to act is there.
The seasonally-adjusted unemployment rate edged up in October to 13.3 percent, from 13 percent in September. In October 2020, the unemployment rate stood at 16.4 percent.
The central government’s primary budget deficit for January to November was 7.87 billion euros, compared with 13.7 billion euros in the first 11 months of 2020. For the month, the deficit came to 700 million euros.
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Next week’s key releases
Tuesday, Dec. 21:
October balance of payments (Bank of Greece)
Thursday, Dec. 23:
October retail sales (Elstat)
Third-quarter unemployment (Elstat)
Elsewhere on the web
Politico reports on the challenge of adapting Europe’s cities to the heat. Featuring Athens’s chief heat officer.
While we’re on the subject of urban planning, this is an interesting read on Teslas today and how, historically, cars took over public streets.
Kathimerini has an interesting interview with Digital Governance Minister Kyriakos Pierrakakis on the state’s incredible digital transformation.
New hotel, who dis? The Hilton Athens will become the Conrad.
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