Bank of Greece Governor Warns of Eurozone Growth Risks
Bank of Greece Governor Yannis Stournaras has raised concerns about the Eurozone's economic prospects, warning that a 10% U.S. tariff on all imports from the region, coupled with uncertainty in U.S.-EU trade relations, could slow GDP growth by up to 0.5 percentage points within a year, CE Report quotes Athens-Macedonian
Speaking to EU ambassadors in Athens, Stournaras cautioned that the Eurozone risks losing its global economic influence, citing its inability to compete with U.S. tech giants and ongoing fiscal struggles. Over the past 12 quarters, the Eurozone's economy has grown at an average quarterly rate of just 0.3%, significantly lagging behind the U.S.
He also noted that the new U.S. administration appears committed to implementing protectionist trade policies, which could further challenge the Eurozone's economic stability.
On monetary policy, Stournaras predicted that the European Central Bank (ECB) will lower its key interest rate to 2% by the end of 2025, down from the current 2.75%. He emphasized that looser financing conditions would help boost competitiveness and investment by improving access to financial resources and reducing capital costs.
