The Minister of Finance, Makis Keravnos, stated that there is a risk of inflation resurgence due to the tension in the Red Sea, but at the moment, predictions cannot be made as the situation is rapidly evolving.
The attacks by the Houthis in the Red Sea have forced container shipping giants to abandon the Suez Canal route and choose the Cape of Good Hope route for maritime trade, leading to increased freight costs and concerns about inflationary impacts.
The European Commissioner for Economic Affairs, Paolo Gentiloni, also made relevant statements, expressing concerns about the developments and the potential for a new inflation resurgence.
Keravnos mentioned that all countries are worried about geopolitical developments and their impact on the economy, energy, and inflation in general. However, he emphasized that it is challenging to predict the impact since the situation is dynamic.
According to Keravnos, the issue was extensively discussed in the recent Eurogroup meeting, focusing on finding energy sources, transitioning to a green economy, and completing a unified European energy source. The discussion is expected to be updated in today’s meeting of the ECOFIN Council.