Kyriakos Pierrakakis, Minister of National Economy and Finance and President of the Eurogroup, gave an interview to Cyprus’s “Fileleftheros” newspaper and journalist Theano Theiopoulou, discussing the state of the Greek economy, the housing crisis, the return of Greeks from abroad, developments in the Middle East, and the Greece–Cyprus–Israel (GSI) electricity interconnection project.
Below are the Q&A from the interview:
The Greek government cites indicators showing growth and an improvement in the country’s economic performance, but many citizens and organizations say they do not see any substantial improvements in their daily lives. In your view, what is the real state of the Greek economy, and how will the problems of rising inflation be addressed?
“The Greek economy today is clearly stronger than it was a few years ago. The country is growing at a rate of nearly 2%, investment has risen from 11% to 17% of GDP, and public debt is declining at the fastest rate in the world. This is real progress. It is proof that Greece is turning a new page and becoming a European model of transformation, resilience, and credibility.
But there is a second truth that must be stated clearly. Economic indicators often improve faster than the daily reality of ordinary citizens. People measure the economy by the cost of living, rent, grocery prices, and energy costs. That is why the fight against inflation remains an absolute priority.
The Greek government has already allocated 800 million euros to support citizens against inflationary pressures. But the permanent solution cannot consist solely of temporary measures. The real solution is an economy that is more productive, more competitive, and more outward-looking. An economy with more investment, better jobs, and greater integration of technology, innovation, and artificial intelligence into production.
Greece’s big challenge is to ensure that growth reaches society even faster. To translate into a real improvement in citizens’ lives. And there are now serious reasons for optimism that the country can achieve this in the coming years.”
The housing problem is a major issue in Europe and is of great concern to Greece and Cyprus. As Minister of Finance, what would you say to a 25-year-old earning around €1,000 to €1,200 who is worried that he will never be able to buy a home of his own? What can the state or Europe do about this pressing problem?
“I would say, first and foremost, that we fully understand his anxiety. It is a matter of dignity, independence, and life prospects. And it does not concern only Greece or Cyprus. It is now one of the biggest social issues across all of Europe. That is why we included the housing issue on the agenda of the Eurogroup meeting held in Nicosia. We must discuss what concerns citizens and seek solutions to major problems.
In Greece, we are trying to address the issue comprehensively. We are increasing the housing supply by providing incentives to bring thousands of vacant homes back onto the market and by regulating short-term rentals in areas under significant pressure. At the same time, we are providing direct support to young people through rent subsidies and the “My Home I” and “My Home II” programs, so that approximately 30,000 people can acquire their own homes.
There are no easy solutions. But we have an obligation to treat housing as a central social priority for the next decade.”
If a young person or a couple is thinking of moving abroad for work, such as coming to work in Cyprus or other EU countries, as Minister of Finance, what would you say to them, or what arguments would you bring to the discussion to prevent the economic migration of young people?
“Fortunately, Greece is now on a path in the opposite direction of the crisis. More than 400,000 Greeks have already returned from abroad, out of approximately 600,000 who had left. In other words, about two-thirds have returned. And this is perhaps the strongest proof that Greece is turning a new page.
We could not accept 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 put to use outside the country. Today, however, this picture has begun to change. More and more young Greeks are returning, creating, and seeing prospects in their homeland once again.
Our great responsibility is to continue building a Greece that creates opportunities: with more investment, better jobs, and a focus on technology, innovation, artificial intelligence, manufacturing, and modern infrastructure.
This is our big challenge. To become a country that does not export its future, but keeps it, harnesses it, and strengthens it here.”
Do you see Europe being driven into new economic instability by the repercussions of the crisis in the Middle East, and what do you consider to be the greatest risk: inflation, recession, migration, or energy prices?
“The crisis in the Middle East serves as a reminder that the economy and geopolitical security are now intertwined. The key, therefore, is not to react with fear or panic, but to act quickly, strategically, and in unity.
The greatest immediate risk to the European economy is renewed pressure on energy prices and inflation. Energy, transportation, and ultimately the cost of living for citizens are already being 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 Europe must pick up the pace. We need a common energy strategy, more investment in technology, artificial intelligence, innovation, and defense. We need a true Savings and Investment Union that will transform European savings into European production, European technology, and European strength.
Europe must stop addressing every crisis in a piecemeal fashion and adopt a long-term strategic approach. It currently faces a historic choice: either it acts quickly and in a coordinated manner, or it will lose ground in an international environment that is changing faster than ever.”
How important is it for Greece to proceed with the electricity interconnection with Cyprus, and to what extent could geopolitical obstacles sideline this major project? What is the significance of the Greece-Cyprus electricity interconnection for the two economies?
“The creation of a new energy corridor in the Eastern Mediterranean—the Greece-Cyprus-Israel (GSI) corridor—is a project of strategic importance not only for Greece and Cyprus, but for all of Europe. It is a project that strengthens Europe’s energy security, geopolitical stability, and strategic autonomy during a period of major international upheaval.
It is no coincidence that this is a Project of Common Interest (PCI) of the European Union, with funding of €657 million already approved. Recently, the Energy Ministers of Greece and Cyprus, in the presence of the Energy Commissioner, officially instructed ADMIE to submit a funding application to the European Investment Bank, paving the way for even greater participation by investors and European funds.
For Cyprus, the interconnection enhances the stability and security of its electricity system and creates the 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 regarding joint interventions in Europe on economic issues?
“Certainly. And I would say that today there is not merely good coordination, but a truly strategic partnership between Greece and Cyprus on major European and economic issues.
The timing is particularly significant, as Cyprus holds the Presidency of the Council of the EU while the Greek Minister of Finance has been elected to the Presidency of the Eurogroup. This creates a strong opportunity for joint action and coordination on critical issues for the future of Europe.
With Makis Keravnos, there is substantial cooperation in sectors such as shipping, energy security, investment, tourism, and the competitiveness of the European economy. Especially in shipping, Greece and Cyprus are two of Europe’s most important players. We therefore share a common responsibility to protect the competitiveness of a sector of strategic importance for European trade and the global economy.”
How can the presence of Greek companies in Cyprus and Cypriot companies 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 third-largest export market, while Greece remains consistently one of Cyprus’s 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 space for investment, entrepreneurship, and development within Europe.
The launch of the National and Kapodistrian University of Athens in Cyprus and the University of Nicosia in Athens also demonstrates that we are investing not only in the economy, but also in knowledge, research, and human capital. Because the true strength of Greece and Cyprus in the coming years will be determined by 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.”