Mr. Gortsos, Professor of Public Economic Law and Academic Head of the LLM Program “Financial Regulation” at the Law School of National and Kapodistrian University of Athens (NKUA), as well as President of the Academic Board of the European Banking Institute, in his presentation referred to the way in which the current developments in the macroeconomic landscape affect the stability of the financial system. In particular, he mentioned that the permacrisis environment in Europe has led the economy into a situation of high inflation and low growth. In addition, he stressed that the factors contributing to inflationary pressures are beyond the direct ECB’s control, and in order to address the current situation, in addition to raising key interest rates, aligning fiscal and monetary policy in the European economy is necessary. Finally, he focused on the elevated risks that may affect financial stability, as bank profitability is expected to decline in 2023, which will lead to a further reduction in lending to the real economy, significantly increasing the probability of a new wave of non-performing loans.
