Kyriakos Pierrakakis, Minister of National Economy and Finance of Greece and President of the Eurogroup, sends messages about the role of Europe and the change of strategy it must promote, through his interview with Fileleftheros, on the occasion of his presence here as president of the meeting of the Ministers of Finance of the Eurozone that took place on May 21-23 in Nicosia.
He states in particular that "Europe must stop dealing with every crisis piecemeal and acquire long-term strategic thinking. It is currently faced with a historic choice: either it will act quickly and in a coordinated manner, or it will lose ground, in an international environment that is changing faster than ever."
The biggest immediate risk for the European economy, explains Mr. Pierrakakis, is a new energy and inflationary pressure. Energy, transport are already affected and eventually the cost of living for citizens will increase. And Europe, he emphasizes, cannot be in a defensive position every time, dependent on the decisions, production and technologies of others.
On the problems of everyday life, with an emphasis on housing, the Greek Minister of Finance notes that "the housing problem is now one of the biggest social issues in the whole of Europe. This is also the reason why we included the housing issue on the agenda of the Eurogroup hosted in Nicosia. We must discuss what concerns the citizens and look for solutions to the big problems."
Regarding the cooperation between Greece and Cyprus, Mr. Pierrakakis points out that the challenge now is to move to an even more ambitious level of cooperation. There is enormous potential in energy, shipping, banking, technology, services, infrastructure and innovation. "Greece and Cyprus can function even more as a single area of investment, entrepreneurship and development within Europe," is the message it sends in all directions.
The Greek government cites the indicators that show growth and improvement in the country's economic performance, but many citizens and institutions say that they do not see substantial improvements in everyday life. In your opinion, what is the real situation of the Greek economy and how will the problems of a new increase in inflation be addressed?
The Greek economy today is clearly stronger than it was a few years ago. The country is growing at a rate close to 2%, investment has increased from 11% to 17% of GDP and public debt is recording the fastest rate of reduction worldwide. This is real progress. It is proof that Greece is turning a new page and is evolving into a European example of transformation, resilience and credibility.
However, there is a second truth, which must be clearly stated. The indicators often improve faster than the daily life of the citizen. People measure the economy by the cost of living, rent, supermarket and energy. That is why the battle against high prices remains an absolute priority.
The government in Greece has already allocated €800 million to support citizens against inflationary pressures. But the permanent answer cannot be only temporary measures. The real answer is a more productive, more competitive and more extroverted economy. An economy with more investment, better jobs and greater participation of technology, innovation and artificial intelligence in production.
Greece's big bet is for growth to reach society even faster. To be transformed into a real improvement in the lives of citizens. And there are now serious reasons for optimism that the country can achieve it in the coming years.
The housing problem is a major issue in Europe and is of great concern to Greece and Cyprus. What would you say as Minister of Finance to a 25-year-old with a salary of about €1,000 to €1,200 who is worried that he will never get his own home? What can the state or Europe do about this hot problem?
I would say first of all that we fully understand his anxiety. It is a matter of dignity, independence and life prospects. And it does not only concern Greece or Cyprus. It is now one of the biggest social issues in the whole of Europe. This is also the reason why we included the housing issue on the agenda of the Eurogroup, which was hosted in Nicosia. We must discuss what concerns the citizens and look for solutions to the big problems.
In Greece, we are trying to deal with the issue as a whole. We are increasing the supply of housing, giving incentives for thousands of closed houses to return to the market and setting rules for short-term rental in areas with very high pressure. At the same time, we directly support young people through the rent subsidy and the "My Home I" and "My Home II" programs, so that about 30,000 people can own their own home.
There are no easy solutions. But there is an obligation to treat housing as a central social priority for the next decade.
The Greeks are returning
– If a young person or a couple is thinking of going abroad for work, such as coming to work in Cyprus or other EU countries, as Minister of Finance, what would you answer or what arguments would you put into the discussion to prevent the economic migration of young people?
Fortunately, today Greece is now on the reverse path from that of the crisis. More than 400,000 Greeks have already returned from abroad, up from about 600,000 who had left. That is, about two-thirds have returned. And this is perhaps the strongest proof that Greece is changing its level.
We couldn't come to terms with the idea that the country would lose its most creative and productive minds. We could not accept that the talent, knowledge and ambition of an entire generation would be exploited outside the country. Today, however, this picture has begun to be overturned. More and more young Greeks are returning, creating and seeing prospects again in their homeland. Our great responsibility is to continue to build a Greece that will produce opportunities: with more investment, better jobs, emphasis on technology, innovation, artificial intelligence, production and modern infrastructure.
This is our big bet. To become a country that will not export its future, but will keep it, utilize it and strengthen it here.
Do you see Europe being led to new economic instability by the effects of the crisis in the Middle East and what do you think is the biggest risk, inflation, recession, migration, energy prices?
The crisis in the Middle East is a reminder that the economy and geopolitical security are now intertwined. So the point is not to react with fear or panic, but to move quickly, strategically and unitedly.
The biggest immediate risk to the European economy is a new energy and inflationary pressure. Energy, transport and ultimately the cost of living of citizens are already affected. And Europe must now go on the offensive, without remaining dependent on the decisions, production and technologies of others.
That is why I believe that Europe must step up its pace. We need a common energy strategy, more investment in technology, artificial intelligence, innovation and defence. We need a real Savings and Investment Union, which will turn European savings into European production, European technology and European power.
Europe must stop dealing with every crisis piecemeal and acquire long-term strategic thinking. It is currently faced with a historic choice: either it will act quickly and in a coordinated manner, or it will lose ground in an international environment that is changing faster than ever.
GSI win-win project – Our level of coordination is very high – Time for a higher stage of cooperation
How important is it for Greece to proceed with the electricity interconnection with Cyprus and to what extent can geopolitical obstacles put this major project on the sidelines? What is the importance of the electricity interconnection between Greece and Cyprus for the two economies?
The creation of a new energy highway in the Eastern Mediterranean, that of Greece-Cyprus-Israel (GSI), is a project of strategic importance not only for Greece and Cyprus, but for the whole of Europe. It is a project that strengthens Europe's energy security, geopolitical stability and strategic autonomy at a time of great international turbulence.
It is no coincidence that this is a Project of Common Interest (PCI) of the European Union, with already approved funding of €657 million. euros. Recently, the Ministers of Energy of Greece and Cyprus, in the presence of the Commissioner for Energy, gave an official mandate to IPTO to submit a financing request to the European Investment Bank, paving the way for even greater participation of investors and European capital.
For Cyprus, the interconnection enhances the stability and security of its electricity system and creates conditions for lower energy costs for households and businesses. For Greece, it strengthens its role as a strategic energy hub, creating new investments and infrastructure. It is a win-win project for Greece, Cyprus and Europe.
Is there satisfactory coordination between Greece and Cyprus for joint interventions in Europe on economic issues?
Of course. And I would say that today there is not just good coordination, but a truly strategic cooperation between Greece and Cyprus on major European and economic issues.
The timing is particularly important, as Cyprus holds the Presidency of the Council of the EU, while the Greek Minister of Finance was elected to the Presidency of the Eurogroup. This creates a strong possibility for joint interventions and coordination on critical issues for the future of Europe.
With Makis Keravnos there is substantial cooperation in areas such as shipping, energy security, investments, tourism and the competitiveness of the European economy. Especially in shipping, Greece and Cyprus are two of the most important powers in Europe. We therefore have a shared responsibility to protect the competitiveness of an industry of strategic importance for European trade and the global economy.
A more ambitious level of cooperation
How can the presence of Greek companies in Cyprus and Cypriots in Greece be strengthened? Are you generally satisfied with the level of economic cooperation between the two countries?
The level of economic cooperation between Greece and Cyprus is already very high and reflects the strategic relationship between the two countries.
The data confirm this. Cyprus is now Greece's 3rd largest export market, while Greece remains consistently one of Cyprus' most important economic partners. This shows that our relationship has real economic depth.
The challenge now is to move to an even more ambitious level of cooperation. There is enormous potential in energy, shipping, banking, technology, services, infrastructure and innovation. Greece and Cyprus can function even more as a single area of investment, entrepreneurship and development within Europe.
The opening of the National Kapodistrian University of Athens in Cyprus and the University of Nicosia in Athens also shows that we are investing not only in the economy, but also in knowledge, research and human capital. Because the real strength of Greece and Cyprus in the coming years will be judged in technology, innovation and the new generation.
So yes, we are satisfied with what has been achieved. But I believe that the potential of Greece and Cyprus is even greater than what we have seen so far.
