Competitiveness, energy and institutions to dominate the next phase

Greek Finance Minister Kyriakos Pierrakakis outlined the economic and  geopolitical challenges, placing particular emphasis on competitiveness, energy and technology at the Economist conference.

In this context, he highlighted Greece’s role as a key link in European energy planning.

The Minister of National Economy and Finance spoke of a substantial change in perspective in the way in which major challenges are now faced. As he noted, issues such as the climate crisis, energy sufficiency and demographics cannot be examined individually, but form a single network that tests the resilience, speed of reaction and operational efficiency of state and European institutions.

Referring to the Greek experience, Pierrakakis said that the country has experienced periods of intense uncertainty, when market confidence was shaken and political credibility was called into question.

Energy: From vulnerability to strategic engagement

On the energy front, the minister noted that Europe had known for years its weaknesses: high dependency, inadequate infrastructure and limited coordination. The energy shock simply made these problems impossible to ignore. The response, although not perfect, was decisive: diversifying sources of supply, stabilising markets, strengthening reserves and accelerating investment. The message, as he underlined, is not isolation from international markets, but disciplined participation in them, with more investment, interconnections and strategic diversification. Energy security, he stressed, affects competitiveness, industry, social cohesion and geopolitical power overall.

For Greece, this approach translates into increased investment, an emphasis on renewables, and enhanced regional cooperation. At the same time, the country leverages its geographical location, at the crossroads of three continents and critical energy corridors, turning geography into a strategic advantage.

Competitiveness

Pierrakakis also referred to the issue of competitiveness, pointing out that, in addition to external tariffs, Europe faces serious internal barriers that act as “invisible tariffs”. As the Draghi and Letta reports have shown, these barriers substantially affect trade within the Union: they are equivalent, according to IMF estimates, to 44% tariffs on goods and over 100% on services, constituting a deep structural problem.

In order for Europe to be able to compete, the minister set three immediate priorities. First, the removal of internal barriers and the drastic reduction of bureaucracy. Second, creating conditions for scale, with cross-border capital markets, regulations that encourage expansion and public procurement that support sustainability. Third, harnessing technology, and in particular artificial intelligence, which can boost productivity, public services and innovation. He stressed, however, that clear rules are essential for innovation to be reliable and sustainable, noting that trust is an economic, not a moral, dimension.

Greek recovery as a restart

Regarding the course of the Greek economy, Pierrakakis emphasized that the recovery was not simply a cyclical reaction after the crisis, but a total restart. The country expects growth of 2.4%, records a primary surplus – a performance that only six countries have – while four of them had previously been in an IMF program.

At the same time, Greece is meeting its memorandum obligations on time and ahead of schedule.

The yields on 10-year Greek bonds are moving on a positive trajectory, however, as he noted, the most optimistic sign is the return of young Greeks who had emigrated during the crisis. This, according to him, is the most significant indicator of a real recovery.

Credibility, institutions and fiscal discipline

The minister underlined that fiscal prudence is a permanent policy framework and not an occasional choice. Not because discipline has value in itself, but because credibility is the foundation of national sovereignty in an unstable world.

Credibility, as he said, is not built only with austerity, but with strong, modern and fair institutions. This framework includes the digital state, tackling tax evasion and the overall legitimization of reforms.

Societies, he stressed, accept difficult changes when they perceive that the system is becoming fairer and not simply stricter.