A clear message that if the crisis due to the flare-up in Iran lasts, coordinated and decisive national and European interventions will be required, says the President of the Eurogroup and Minister of National Economy and Finance Kyriakos Pierrakakis, speaking to “THEMA”. He stresses that today’s Eurogroup meeting will put the impact of the geopolitical crisis on energy and inflation at the top of the agenda. He points out that the “alarm threshold” for the economy is for the price of oil”to remain significantly above $100 for several weeks” and that measures such as the fuel pass previously used are in the quiver in case the crisis is prolonged. But he makes it clear that there will be no new tax cuts this spring, as fiscal space is postponed until 2027.

Regarding economic issues, the focus remains on tourism, seafood, and interest rates. As Kyriakos Pierrakakis notes, “in Europe we are closely monitoring any developments that primarily affect borrowers with variable interest rates.” In this context, he also sends a message to banks, emphasizing that “it is critical for the banking system to operate transparently and in accordance with the rules we have established.”

On the political front, Pierrakakis highlights the importance of political stability and clarifies that agreement on key issues should not be seen as a sign of weakness. He stresses that Europe is entering a period in which its strategic autonomy will determine its ability to defend its interests effectively. At the same time, he underlines that the decision by the Prime Minister to provide direct support to Cyprus reflects “the Greece we want.”

Looking ahead to the 2027 elections, he believes that self-reliance for New Democracy remains a realistic goal. As he explains, “in times like these, the country needs a strong government and a prime minister who can confidently steer the ship.”

Interview

Kostis Hatzidakis Plantzos – Giorgos Evgenidis:
You are the chairman of the Eurogroup at a very critical international moment and, by virtue of your position, you have already participated in meetings with European leadership over the past week. Do you believe that Europe is speaking with one voice in response to this geopolitical challenge?

Kyriakos Pierrakakis:
Europe is facing a serious geopolitical test. In such moments, unity, a clear strategy, and determination are essential. Europe must respond with a unified stance and a strong presence.

From the meetings I have held in recent days as President of the Eurogroup with European Council President Antonio Costa, European Commission President Ursula von der Leyen, and European Central Bank President Christine Lagarde, a clear picture has emerged. There is shared concern about the impact that developments in energy prices may have. For this reason, it is crucial that Europe acts quickly, in a coordinated and decisive way.

The geopolitical reality has changed. Europe is entering a period in which unity, strategic autonomy, and economic strength will determine its ability to defend its interests and shape its role in the world. The direction is clear: deeper European integration, strengthening the common currency, mobilizing European savings to support growth, and launching major institutional and economic initiatives that can change the rules of the game. We need a Europe that truly functions as a unified power.

Question: Was the European message of support for Cyprus after it was directly targeted sufficient?

Pierrakakis:
European messages of support for Cyprus are strong and are being reflected in practice, as several major European countries are increasing their presence in the region. This is the kind of Europe we want to see.

And this is also the Greece we want. Kyriakos Mitsotakis has shown the path of solidarity. Greece is stronger today than ever before. It has strengthened its deterrence capabilities and upgraded its defense equipment. It is a country capable of responding responsibly to the challenges in the region.

Cyprus is not alone. Its security is, for us, a matter of national responsibility, strategic consistency, and a non-negotiable priority.

Question: Are EU countries prepared for another war, possibly a long one, in our neighborhood? The consequences would clearly affect everyone.

Pierrakakis:
Europe cannot afford to be caught unprepared. In recent years we have faced a series of crises: the pandemic, the energy crisis, and Russia’s invasion of Ukraine. The world has changed, and Europe must be ready to respond to these new challenges.

No one can safely predict the duration of the current crisis. However, the consequences of a prolonged conflict in our neighborhood would certainly be felt in energy markets, transport, supply chains, and commodity prices. That is why we must act quickly and in a coordinated way to limit the pressure and protect both our economies and our citizens.

Question: What is Greece’s geopolitical role in this crisis?

Pierrakakis:
Greece has consciously chosen to act as a force for stability, dialogue, and cooperation. Our strategic relations with Israel and the United States, as well as our historically strong ties with Gulf countries, reflect this role. Greece is a country that can speak with everyone and contribute to stability in the wider region.

Our position is always based on respect for international law. Tensions and conflicts are not a solution. Every action must be evaluated in the context of international legitimacy and the need to maintain regional stability. What matters most today is de-escalation and avoiding a broader regional conflict.

Question: Could Europe once again open financial support mechanisms similar to previous crises?

Pierrakakis:
In periods of instability, timing is crucial. If the turbulence is temporary, markets and economies can absorb the shock. But if the crisis becomes prolonged, stronger and more coordinated European interventions will be necessary.

The Eurogroup plays a central role in economic coordination. It is the forum where eurozone countries jointly assess risks and prepare coordinated responses when needed. At the upcoming Eurogroup meeting, the impact of the geopolitical crisis on energy costs will be a key topic, since rising energy prices could create new inflationary pressures.

Question: Is there any possibility that Europe might reconsider energy supply from Russia?

Pierrakakis:
The European Union’s policy toward Russia was shaped after the invasion of Ukraine with the primary goal of strengthening European energy security. Europe made a conscious choice to reduce its dependence and increase the resilience of its economy.

Over the past years, Europe has diversified its supply sources, strengthened LNG infrastructure, invested in renewable energy, and developed new partnerships with alternative suppliers. This strategy is long-term and difficult to reverse. Europe will not compromise its energy security again.

Question: Is Greece today more resilient than it was during the 2022 crisis?

Pierrakakis:
There are similarities with 2022 in terms of pressure on oil and gas prices, but it is still too early to draw conclusions.

However, Greece is clearly more resilient today. Back then, the economy was emerging from the pandemic. Today, it stands on a stronger foundation, with growth roughly twice the European average and improved public finances.

Our energy dependence is also lower. The country has significantly increased renewable energy production and diversified its supply sources. Initiatives such as the Vertical Corridor project, which transports LNG from the United States to Central Europe via Greece, also strengthen our resilience.

Question: At what oil price level would support measures become necessary?

Pierrakakis:
If oil prices remain significantly above $100 for several weeks, that would certainly require closer attention and possibly a reassessment. However, we are not at that point yet.

Question: Could measures similar to past support programs be introduced?

Pierrakakis:
The duration of the crisis will determine our response. If the turbulence is short-lived, measures may not be necessary. But if the crisis becomes more intense and prolonged, we will consider using the tools available to us.

We have already shown that we can intervene in a targeted way when pressures arise, whether in energy bills, transportation, or fuel costs, while maintaining fiscal stability.

Question: Could geopolitical tensions affect tourism and investment in Greece?

Pierrakakis:
So far there are no indications that the key pillars of the Greek economy—tourism and investment—have been affected. If tensions persist for a longer period, we will carefully evaluate the data and any potential impact.

Question: If inflation rises again, could interest rate cuts be delayed?

Pierrakakis:
Interest rate policy is the responsibility of the European Central Bank and depends on inflation and economic data. At the moment there is no such discussion. However, we are closely monitoring developments, since any change mainly affects borrowers with variable-rate mortgages.

Question: Could new relief measures be announced soon?

Pierrakakis:
Based on the budget approved in December, there was never a plan for new measures in April. Especially now, the circumstances require careful fiscal management.

If there is no major disruption in the economic environment, fiscal space is expected to be created by 2027. Our intention is to use it to reduce tax burdens and strengthen growth for households and businesses.

Question: Is political cooperation between parties possible in the current climate?

Pierrakakis:
The meeting between the Prime Minister and the President of PASOK was a positive step. It showed that communication channels can exist on major issues.

Agreement on critical matters is not a weakness—it reflects seriousness and political maturity. In difficult moments, Greece must speak with a clear and unified voice.

Question: With elections approaching, could coalition government become necessary?

Pierrakakis:
The current situation highlights the importance of political stability. In times like these, the country needs a strong government and a prime minister capable of steering the country with confidence.

Personally, I believe the prospect of self-reliance for New Democracy remains open. Citizens will compare plans, people, and results—and I believe they will choose stability, responsibility, and a clear perspective for Greece.