Thus, the amount of the government securities that the Bank can purchase has a ceiling that is specified by “confidence”. The Bank has been purchasing a significant amount of JGBs, but its operation rests on a subtle balance that is based on sustaining such confidence.
A single currency will greatly enhance prospects for bringing in new industries, as the elimination of exchange rate risk will encourage firms to produce closer to their markets. Large infrastructure projects already underway – and financed through the Community Support Programmes – will improve competitiveness and provide a further inducement for firms to move to Greece.