Week of 8 February 2021
GREECE: The Covid-19 situation is becoming more serious in Attica, Greece’s wealthiest and most populous region, which includes Athens. Active infections in the region are estimated at 5,100, for a nationwide total of around 10,000; most concerningly, the ICU occupancy rate in the region is currently at 83 percent. On Thursday, the Greek government imposed a two-week ‘hard’ lockdown on Attica, which includes a night curfew and extensive use of click-and-collect services for shopping; nevertheless, cases are expected to continue to rise in the short term.
ITALY: On Saturday Mario Draghi, the widely respected former director of the European Central Bank from 2011 to 2019, was sworn in as Italy’s new PM. Mr Draghi was asked to form a new government by the Italian head of state, President Sergio Mattarella, following the collapse of the coalition supporting Giuseppe Conte’s government back in January. Draghi seems to command the support of most of Italy’s parliamentary groups (left-wing LeU, centre-left Partito Democratico, liberal Italia Viva, centre-right Forza Italia, right-wing Lega, populist M5S) which has complicated the negotiations to form his new government. The main challenge he is expected to face is managing Italy’s post-pandemic recovery, which includes a €200bn recovery fund from the EU.
NETHERLANDS: According to reports published this week, Amsterdam has overtaken the City of London as Europe’s largest share trading hub. In 2020, €17.6bn worth of shares were traded every day in London, compared with just €2.6bn in Amsterdam (then Europe’s sixth-largest trading hub). This year, the situation has changed dramatically, with just €7.8bn traded in London every day and €8.7bn in Amsterdam. This dramatic weakening of London’s position is closely linked to Brexit, as under EU law shares traded in euros must be traded either in the EU or in ‘equivalent’ markets, and the EU–UK deal struck last December did not grant ‘equivalence’ status to the UK. It remains an open question whether these developments are a short-term crisis or signal the end of London’s status as Europe’s financial capital.
NIGERIA: Ngozi Okonjo-Iweala is expected to become the new director-general of the World Trade Organization (WTO) after the White House announced its support for her candidacy. The succession at the head of the WTO was a thorny issue in the final period of the Trump administration, as the former U.S. president had thrown his support behind South Korean trade minister Yoo Myung-hee; the impasse came to an end when President Joe Biden announced he would support Okonjo-Iweala, paving the way for Yoo Myung-Hee’s decision to drop out of the race. Okonjo-Iweala, who served two stints as Nigeria’s finance minister after a 25-year career at the World Bank, will be the first WTO director-general from Africa. She is expected to build her post-pandemic strategy upon the raising of living standards worldwide.
