
Greece’s increased exposure to environmental risks, especially those stemming from climate change, is highlighted in a report by Moody’s on the occasion of the recent catastrophic fires, emphasizing that the costs associated with them may be manageable, but the facts underline that country is vulnerable to climate change.
The report notes that in the last two weeks, Greece (with a Ba3 rating stable) has experienced its worst fires in decades in what Prime Minister Kyriakos Mitsotakis described as a natural disaster. While European emergency funding will cover much of the relevant costs and additional reconstruction, and the cost of compensation is manageable for the government, the events highlight Greece’s increased exposure to environmental risks, especially those stemming from climate change.
The authors of the report describe the measures announced by the government and the disbursement of the first 4 billion euros for the Recovery Fund, while expressing the belief that the fires are indicative of the credit risks from climate change, which we capture for Greece. with “moderate negative” in terms of environmental profile.
While the causes of the fires have not yet been determined, Southern Europe has experienced the worst heat wave in almost three decades, with Greece seeing temperatures of up to 45 degrees Celsius. This is significant in the context of the findings of a report released by the UN Intergovernmental Panel on Climate Change on 9 August, which suggests that heat waves every 50 years are now more likely every decade.
Although Greece is likely to continue to receive financial support from European institutions, a further increase in the frequency and severity of these events could weaken the tourism industry. In addition, environmental damage and potential reductions in real estate tax bases create long-term credit challenges for local governments.


Latest News

Greece Faces Renewed Fears of Water Crisis Ahead of Summer 2025
Following a prolonged drought that began in 2024, fears of a water crisis highlight the urgent need for infrastructure improvements

Harvard, Yale, Columbia, and More Seek Collaboration with Greek Unis
Greece's former Minister of Education Kyriakos Pierrakakis announces an €82 million funding boost to support the partnerships

Greek Government Reshuffle Brings in More Young Technocrats
Greek PM Mitsotakis has brought in younger leaders and technocrats in a bid to accelerate the government's efforts at modernization and efficiency, according to New Democracy insiders

Greece’s New Government Members Sworn in at Presidential Mansion
Greece's new government members were sworn in on Saturday morning and head straight to work through the first meeting of the new cabinet.

Moody’s Upgrades Greece to Investment Grade, Ending Crisis Era
The rating agency raised Greece’s long-term credit rating to Baa3 from Ba1, with a stable outlook.

EFET on World Consumer Day: Humanity Faces New Challenges
This year’s message emphasizes the need for a transition to sustainable lifestyles while safeguarding consumers’ legally recognized rights. This means ensuring access to essential goods such as food and energy, as well as health and safety.

Athens Hotels Lead Europe in Value Growth for Third Year
Over the entire period from 2015 to 2024, the average annual increase in hotel value was 6.1%.

Unemployment Rate in Greece Down 8.9% in January: IOBE
The unemployment rate in Greece recorded a further decline in January 2025, reaching 8.9%, according to the latest Foundation for Economic & Industrial Research (IOBE) report.

Demand for Short Term Rentals in Greece Surges Ahead of Easter
Among the most popular Easter destinations from Good Friday to Easter Monday are Corfu, Hydra, the Peloponnese, Ioannina, Patmos, Loutra Edipsou, Kavala, Thassos, and Pelion

Opposition Reacts Strongly to Greek Government Reshuffle
PASOK's spokesperson, Kostas Tsoukalas, characterized the reshuffle as a clear indication of Mitsotakis' "strategic deadlock."