“One key word is ‘uncertainty’ and a second is ‘duration.’ The depth of the impact will in itself be the determining factor in this equation of the overall economic outcome we will see in the coming months,” said Eurogroup President Kyriakos Pierrakakis, arriving at the meeting in Brussels , regarding the situation in the Middle East.
“The discussion is different if we are facing a crisis lasting two weeks and different when the crisis lasts two or three months. And obviously, this will also influence the European response, ” he emphasized.
As Mr. Pierrakakis noted, the impact of the crisis in the Middle East and the measures currently being taken by European governments will be discussed at the Eurogroup meeting, in which the IMF will also participate, to assess these measures together with the Commission.
Regarding energy prices, he noted that “every government is currently taking measures. There is an impact from the crisis in the Middle East, which is being felt by every household and every business in Europe,” noting the need for a coordinated response.
He clarified that the European Commission has emphasized that measures must be targeted, temporary, and tailored. “We believe that such measures have the greatest impact in protecting the most vulnerable citizens and our economies in general.”
When asked about the proposed changes to the operation of the Strait of Hormuz and the imposition of tariffs, the Eurogroup President stressed that “freedom of navigation and ensuring that the Strait of Hormuz does not become a ‘toll road’ is absolutely essential. We support, through diplomatic means, any initiative moving in this direction,” while noting that he understands the concerns, as he comes from a maritime nation.
Today’s Eurogroup agenda, he said, “is packed” and includes “banking integration in Europe, as well as how startups can evolve into scale-ups in Europe, as part of the Savings and Investment Union and the removal of barriers.” Regarding banking integration, “we need more integration in Europe. We need more cross-border mergers and acquisitions. That is absolutely right.”