The new Greek government must create a strategy to save its debt rescue program and win the favor of the International Monetary Fund auditors. The economic climate is rough with sentiment and the focused exchange traded fund coasting on reform hopes.
“We don’t want to change the targets,” Prime Minister Antonis Samaras told parliament. “What needs to change is that which is hampering us from attaining the targets. We want to fight the recession.” [Stock ETFs Rise Before Greek Elections, Fed Meeting]
Many analysts had viewed the upcoming election as a turning point for Greece. Samaras, the newly elected Prime Minister will do all it takes to keep Greece in the Eurozone. Various growth boosting measures such as speeding up privatizations, and tax reforms to taking on the bureaucracy, will be implemented, reports Dina Kyriakidou for Reuters. [Greek ETF Rises Amid Bank Withdrawals, Food Stockpiling]
The $6 million Global X FTSE Greece 20 ETF (NYSEArca: GREK) has reacted to the election and the near term outlook. The ETF has rallied about 8% over the past week, but with 30% allocated to the financial sector, a strong comeback is not expected.The country has been in a debt crisis for over a year. [Greece ETF in Sharp 2-Day Rally as Election Looms]
In March, the European Commission forecast the Greek economy to contract a total of 4.7% in 2012.