Greece is among several EU countries where elections in 2027 may lead to difficulties in forming a stable government, according to Goldman Sachs.
In 2027, nine European Union countries – France, Greece, Italy and Spain among them – will stage national elections before September.
The prospect of uncertain results leading to hung parliaments – ones where no single party has a parliamentary majority – exacerbates political risk and what it means for the markets, a Goldman Sachs research note says.
Difficulties to form a government are historically connected to political instability, a less prudent fiscal position and a slower reduction in public debt, if not its growth.
The concentration of political risk in such a short time will mean fiscal policy and government formation will act as market catalysts in 2027.
