Greece: Election Result Secures Policy Continuity

The election results will most likely bring another period of political stability to Greece and secure policy continuity, allowing the new government to implement reforms and investments. The majority government will provide legislative stability at a time when Greece hopes to manage its EU funds to boost economic prospects. Furthermore, reforms in the health and justice system, reducing inequality, and setting new policies to deal with Greece's ageing population - including by establishing a new Ministry of Social Cohesion and Family dedicated to the demographic issue - appear to be high on the new government's agenda.

Key Highlights
-- New Democracy maintains its strong lead and secures an absolute majority in the parliament, electing the same number of MPs as in the July 2019 election.
-- The election results secure policy continuity facilitating the implementation of reforms and investments.
-- Reforms and growth-enhancing investments, within a framework of fiscal discipline, could improve Greece's creditworthiness.

“Greece's election result secures policy continuity,” says Nichola James, Co-Head of Global Sovereign Ratings. The continuation of structural reforms and growth-enhancing investments, within a framework of fiscal discipline, could continue to help improve Greece's creditworthiness. ”