The Israel-Hamas war is creating new challenges for Europe's economy, from energy market disruption to an influx of refugees, the governor of the Bank of Greece warns.

"As the monetary tightening has caused a general increase in interest rates and weaker growth, there is no room for complacency in fiscal policy", stressed Giannis Stournaras speaking at the EUROFI 2023 High Level Seminar. The governor of the Bank of Greece pointed out that "it is imperative that the fiscal orientation to remain restrictive and the new fiscal rules (which are more flexible and avoid the pro-cyclicality of the previous ones) to apply in the eurozone from the beginning of 2024".

The new Minister of National Economy and Finance Kostis Hatzidakis will have a full discussion with the Governor of the Bank of Greece Yiannis Stournaras this afternoon.