Mitsotakis warns of global economic shock as US–Iran tensions escalate

At a infinitesimal of heightened geopolitical instability, Greek Prime Minister Kyriakos Mitsotakis has warned that escalating tensions linked to the US–Iran confrontation could person wide-reaching economical consequences, including higher inflation, slower maturation and renewed unit connected households.

Speaking successful speech with Financial Times Europe Editor Ben Hall connected the sidelines of the “Energy Transition Summit: East Med & Southeast Europe”, Mitsotakis said Europe remains committed to a diplomatic solution but stressed the seriousness of the existent moment.

“Iran indispensable not get a atomic weapon and, of course, state of navigation successful the Strait of Hormuz indispensable beryllium afloat restored,” helium said, warning that disruptions to 1 of the world’s astir captious vigor corridors would acceptable a “highly unsafe precedent”.

He cautioned that policymakers indispensable beryllium prepared for an adverse script successful which the struggle widens and planetary economical conditions deteriorate, adding that governments would request to support citizens done renewed cost-of-living pressures while avoiding argumentation responses that could further substance inflation.

Turning to Greece’s home position, Mitsotakis pointed to improving fiscal indicators, estimating that within the year Greece whitethorn nary longer beryllium the astir heavy indebted state successful Europe. He said the country’s instrumentality to superior fund surpluses has created fiscal space, placing Greece among a small radical of EU economies successful surplus.

He besides reiterated that vigor information has go a cardinal European concern, arguing that developments successful the Strait of Hormuz underline the urgency for the EU to treat vigor resilience arsenic a strategic precedence alternatively than a secondary argumentation issue.