The prospects for the vertical energy corridor and the possibility of intense inflationary pressures in the EU this coming winter due to the natural gas shortage, which Europe will inevitably have to address, were highlighted by the Chairman and CEO of the AKTOR Group, Alexandros Exarchou, during a discussion at The Economist conference“Investing in Change: How Crete Is Being Transformed,”held in Chania.
Mr. Exarchou noted that the vertical energy corridor is less of a business venture and more of a national initiative, as it represents a strategic bet for Greece in which the Greek government has invested from the outset, but also an initiative that responds to broader geopolitical shifts taking place internationally.
He also pointed out that the long-term contracts secured by the AKTOR Group will not only ensure better balance and reduced dependence, but will also help improve the financial attractiveness of the essential infrastructure projects needed to make the vertical corridor a reality.
The EU will support the vertical corridor
Furthermore, although he acknowledged that the Vertical Corridor project facesopposition from certain EU member states, he predicted that it will not only ensure commercial success at the European level but will also be supported by the EU. Mr. Exarchou emphasized that Europe’s true dependence was on Russian natural gas, a fact that was clearly demonstrated in 2022 with the war in Ukraine, when Russia used it as a political tool. He explained that Europe needs a balance in its energy sources, and this is achieved through long-term supply contracts, clarifying that no one in Europe seeks to have the U.S. as its sole gas supplier.
A difficult winter due to inflation
Furthermore, he commented that the EU should, rather than waiting idly for difficulties to arise, take immediate action to address them in a timely manner and build defenses against inflationary pressures in a structured way, which would also help restore energy balance.
The head of the AKTOR Group predicted that the coming winter will be particularly difficult for the EU as the ban on Russian gas will be compounded by the difficulties Qatar faces in exporting its own gas due to the damage it suffered from the war in Iran. He also assessed that, since finding a natural gas supplier will be difficult, Europe will find itself in a difficult position, which will be exacerbated by the emergence of inflationary trends as a result of increased energy costs and the shortage of gas supply.
In fact, he estimated that this year, member states will be forced to find resources to support their economies due to the energy gap. Energy is security, and security comes at a cost, Mr. Exarchou concluded.
Excellent prospects for Credia Bank
Speaking in his capacity as a shareholder of Thrivest Holdings, Mr. Exarchou also commented on Credia Bank’s trajectory. As he noted, when he spoke two years ago at the general meeting of shareholders of what was then Pancretan Bank and asked its shareholders to support the initiative for the 5th banking pillar, he could not have imagined that two years later, the two then-independent banks —Pangritia and Attica—which had negative equity, would today have been transformed into a fully capitalized bank with zero deferred tax and capital ratios comparable to those of systemic banks.
And as he emphasized, now that it has been restructured and acquired by HSBC Malta, Credia has excellent prospects, which are the result of the tremendous effort made not only by the shareholders but primarily by the bank’s management. He also noted that the bank’s successful recovery is a testament to what can happen when there is a government that supports entrepreneurs who take risks in an economic environment characterized by growth and positive prospects.
Political stability is key
Mr. Exarchou noted that the economy would not have grown successfully without political stability, which instills confidence in the markets that the investment projects that have been promoted will be successfully implemented in the future, in a safe and predictable environment. In fact, he noted that, as positive prospects for the economy have recently been secured, the investment community is no longer merely exploring investments but is actually implementing them—and, indeed, with their own capital, as the efforts the country has made in recent years to develop its economy are beginning to pay off.