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22ndannualcapital

Capital flight of 2.5 billion euros in December

Greek depositors withdrew 2.5 billion euros in December according to an article in the German newspaper Die Welt.

The political uncertainty triggered by the prospect of snap elections to be held next month appears to have been a driving factor of the capital flight. In November, the article maintains, only 200 million euros ‘left’ Greek banks.

The newspaper makes clear that the withdrawals do not amount to a bank run, although banks are eyeing the situation cautiously.

The article points out that concern among Greeks has increased due to the political developments. Last month, in a surprise move, the government brought forward a parliamentary vote for a new president of the republic. The government’s candidate, Stavros Dimas, failed to garner the support of the required super majority of MPs, triggering snap elections to be held on the 25th of January.

Die Welt states that Greeks fear a resurfacing of the euro crisis due to the fluid political situation and a likely rise to power of the anti-bailout opposition party SYRIZA.