Kyriakos Mitsotakis called for European fiscal flexibility so that additional VAT revenues arising from energy inflation can be directed toward targeted and temporary support measures, in joint statements with Lithuanian President Gitanas Nausėda.

At the same time, he announced additional financial assistance for fishermen and sent a clear message to Turkey regarding SAFE, stressing that the participation of third countries in European defense programs cannot take place “without conditions.” Referring to the turmoil in international bond markets, the prime minister made clear that fiscal balance remains a non-negotiable priority.

“I am fully aware that there is currently a global crisis in the bond market. Under no circumstances would our country put at risk the very significant achievement of restoring market confidence in the government’s determination to remain firmly on the path of fiscal balance. This is non-negotiable for our country,” he said. However, he raised the issue of using the additional tax revenues generated by energy inflation.

“If the Greek government, for example, has additional revenues above and beyond what it had forecast from value-added tax, solely and exclusively because of inflation stemming from energy, then, from an accounting perspective, these additional revenues could potentially be used for targeted and temporary measures to support society.”

As he stressed, such a move “does not put the country’s fiscal stability at risk,” but is linked to Europe’s fiscal rules. He also recalled that, in a recent letter to the President of the European Commission, he called for “an immediate and bold European response,” with reasonable flexibility to support households and businesses.

Kyriakos Mitsotakis also announced a financial intervention for fishermen. “We know that we have a problem with our fishermen. We are working on how to address it and how to provide them with additional financial assistance,” he said, while pointing out that “the possibilities are limited.”

Message to Turkey over SAFE

Regarding the participation of third countries in European defense programs, the prime minister made clear that access to European funds requires respect for the security interests of member states.

“Their participation in programs supported by European funds cannot be without conditions. Therefore, in order for someone to join SAFE or similar European initiatives, they must first respect the security interests of the member states, without any asterisks.”

Kyriakos Mitsotakis argued that defense should be treated as a European common good and that the mutual assistance clause under Article 42.7 must “acquire substance.”

Referring to the support provided by Greece and other states to Cyprus, he noted that European solidarity “can and must also acquire an operational expression,” complementing NATO. “That is why strengthening defense will be at the center of the Greek presidency,” he said.

Russian threat, hybrid attacks and the Evros

The prime minister expressed Greece’s solidarity with Lithuania in the face of hybrid attacks, noting that Athens fully understands its concerns regarding the Russian threat.

“Unauthorized crossings and acts of sabotage are now threatening the whole of Europe and require a coordinated response,” he said, stressing that the eastern and southeastern borders are on the frontline of security.

He also linked Lithuania’s experience with what happened at the Evros border in March 2020.

“Greece faced such a hybrid attack at Evros in March 2020. And that is why we were the first to stand by your side when, a year later, you faced a similar threat.”

“Cohesion is not the enemy of competitiveness”

Regarding the new Multiannual Financial Framework, the prime minister assessed that the resources proposed do not match Europe’s increased ambitions.

“Cohesion is not the enemy of competitiveness. It is rather a prerequisite for European competitiveness,” he stressed.

Finally, he said that maritime security will be a priority of the Greek presidency and will also be highlighted by Athens at the UN Security Council.