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Eurozone risk management gets political
Deposit flight from Greek banks in the aftermath of the country’s May elections provided a stark reminder of the growing importance of political risk in Europe, a subject banks have had to swot up on in recent years. By Michael Watt, with additional reporting by Joe Rennison
![instability-ballotbox instability-ballotbox](/sites/default/files/styles/landscape_750_463/public/import/IMG/100/223100/instability-ballotbox-580x358.jpg.webp?itok=Ki1i7Ght)
Political risk is a nebulous term that occasionally achieves painful clarity – for example, during the weeks following Greek elections on May 6. With the country’s second bail-out signed off by eurozone finance ministers two months earlier, the Greek electorate had a chance to make a statement about the accompanying austerity conditions – it became a protest vote, draining power from the incumbent coalition government and threatening the country’s future as part of the eurozone (see box).
Peter
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