Athens fears new energy emergency
The threat of generalized conflict in the Middle East is reportedly causing intense concern in Athens regarding the turbulence it could trigger in the energy sector, supply chains, and in the economy in general.
Regarding energy, there is reasonable concern about the impact on oil and natural gas prices but also about the risk of disrupting energy transport routes, and the knock-on effect this will have on prices.
Such a turn of events was demonstrated by the war in Ukraine, and how an energy crisis can cause chain crises, including price hikes in services and goods, increased transportation costs, and supply chain issues for a variety of consumer items. All this translates into price rises in essential products, which has already happened due to past hikes that have not been entirely addressed.
According to a government source, the turmoil in the international stock markets on Monday reflected the great vulnerability that exists in the markets and the shocks that the generalization of the crisis can cause.
“When just the rumor of a possible start of hostilities causes such a stir, one can easily see the impact that an actual generalization of the conflict will have,” a government official noted.
Apart from the impact on the economy, there is vigilance concerning a number of other issues that may arise – namely a new refugee wave, which would be massive in the event of a generalization of the conflicts. Tellingly, Minister of Citizen Protection Michalis Chrysochoidis visited Evros on Wednesday to provide assurances that the area “is safe and this safety will continue to exist, at a time when the pressures from our environment are increasingly intensifying.”
Another issue that has drawn the government’s attention is the prospect of tourism-related repercussions due to the country’s proximity to the Middle East. However, official sources express confidence that Greece has demonstrated in previous crises that it can provide a safe environment for visitors.
