OT Delphi Economic Forum X – Theodoros Skylakakis: Comes violent … Falling prices on energy

Future political developments, internationally, will be « violent » in the light of the tariff policy pursued by the new US government, said Theodoros Skylakakis, a New Democracy MP and former Minister, speaking to the financial postman in the context of Delphi.

However, the energy sector on the other hand will have a violent … price fall, according to Mr Skylakakis. « In Greece we will have the decoupling phenomenon in energy that is expected to start in the spring and will have a decrease in prices for the next 2 years, » he said, referring to the decoupling profits of utilities from sales.

Now, the debate internationally will leave the energy sector, he concluded. However, the heaviest crisis is the one that comes because it will be structural and will last about four years, he said.

As he explained, internationally the recession is on the doorstep of international economies and especially for the American as we will have an increase in inflationary pressures and at the same time a decrease in wealth. On the contrary, in the European Union we will see pressure on the real economy, while in the United States we will have a structural economic crisis.

Investment uncertainty

Within all this climate, Mr Skylakakis stressed, there will be an investment uncertainty as international investors will have to choose to stay on the path of globalization or not. « No one will invest anywhere until the landscape is cleared, » he said. At the same time, as he pointed out, there will be a strong dignity that will come to add a new kind of bureaucracy.

Theodoros Skylakakis predicted a financial system disorder, mainly in America, and US technology companies related to the US financial system will also face pressure. There will certainly be dollar destabilization, he said.

Structural attempt to remove globalization

Asked if there is a reaction plan to tackle all these situations, Mr Skylakakis said that « there is no model for all these developments ». « The banking crisis was essentially correction, here we are not talking about correction. This is a structural attempt to abolish globalization, « he said.

Answering the question of what the impact on the Greek economy will be, Mr Skylakakis made it clear that Greece has a small part of its exports heading to the United States with the bulk heading to the European Union, so the effects will be delayed. « Maybe from 2026 » Theodoros Skylakakis said, noting that the impacts will be found when the international recession reduces income and we will see a decline in tourists arrivals.

In addition, the climate crisis brings additional costs and there will be increases in defense spending that will also increase due to Trump’s political choices.

Asked if there is hope for the future, the former minister recalled that « we have made the right policies in recent years, all that we have achieved should not be doubted. » « We have to continue the change of state, these will be the political stakes of the next elections, » Theodoros Skilakakis concluded.