Greece Ready for Measures if Energy Crisis Worsens

Greece is prepared to present further economic support measures if the ongoing vigor situation linked to tensions successful the Middle East intensifies, Finance Minister and Eurogroup President Kyriakos Pierrakakis said connected Friday.

Speaking astatine an planetary economical forum, Pierrakakis stressed that while nary caller bundle is presently planned, the state has the indispensable “fiscal firepower” to enactment if conditions deteriorate. Any intervention, helium noted, would stay within strict budgetary rules.

“We are not there yet,” helium said, referring to the anticipation of further measures, while highlighting that caller support initiatives had already been announced earlier this week.

Fiscal Discipline and Economic Stability

Pierrakakis pointed to Greece’s improved economical position, citing fund surpluses, declining nationalist indebtedness and sustained growth. He emphasized that supporting households indispensable beryllium balanced with maintaining fiscal stability.

“It is simply a conscious determination not to walk the load connected to aboriginal generations,” helium said, acknowledging that citizens proceed to look unit from precocious surviving costs and increasing economical uncertainty.

Lessons from the Past

Referring to the vigor situation of 2022, Pierrakakis noted that some policies implemented astatine the clip proved ineffective oregon adjacent counterproductive. He said governments present person a clearer model for responding to akin shocks.

“With the information we person today, doing much astatine this stage could beryllium counterproductive,” helium explained, adding that Europe is successful a stronger presumption than it was a fewer years agone owed to a much diversified vigor mix.

However, helium besides highlighted ongoing challenges, including the request for further concern successful vigor storage and infrastructure.

European Priorities: Competitiveness and Security

European Commissioner Valdis Dombrovskis warned that the Middle East situation is already weighing connected the European economy, with a projected interaction of betwixt 0.2 and 0.6 percent points connected growth.

He besides cautioned that ostentation could emergence by much than 1 percent point, raising the hazard of stagflation.

According to Dombrovskis, the main interest is not vigor availability but rising prices. European authorities are coordinating the merchandise of strategic lipid reserves to stabilize markets, while intimately monitoring substance supply chains.

Targeted Support Over Broad Measures
Both officials emphasized that immoderate aboriginal support measures should beryllium temporary, targeted and aligned with fiscal constraints, fixed already elevated levels of nationalist indebtedness and deficits crossed Europe.

Dombrovskis underlined that the European Union’s top priorities stay strengthening competitiveness and enhancing information and defence capabilities.

Strengthening Europe’s Economic Foundations
Pierrakakis besides called for deeper structural reforms within Europe, including advancing concern and savings initiatives, supporting cross-border concern enactment and strengthening fiscal and technology sectors.

He described the transatlantic narration arsenic “fundamental,” but stressed that Europe indispensable reenforce its ain economical and defence capabilities.

“The biggest obstacles are internal,” helium said. “And those are the ones we indispensable remove.”

As uncertainty persists, policymakers signaled readiness to act—but lone if conditions necessitate it—while prioritizing semipermanent economical resilience implicit short-term interventions.