The cap on rents that is to be introduced in the near future aims to protect renters in “overstretched housing markets” against sharp rent increases. This regulation could likewise have undesirable adverse side effects in the long term by resulting in reducing housing construction, particularly in big cities. What is more, Greece is once again keeping the rest of the euro area on tenterhooks.
Greeks will go to the polls in ten days’ time and there are fears that a new Greek government will not be able to stand by the commitments previously made by the country, leading to a resurgence in uncertainty surrounding the euro area’s economic outlook – uncertainty which had been thought, by some, to be a thing of the past.