Kyriakos Pierrakakis, speaking from Paris on the sidelines of the OECD Ministerial Council Meeting, highlighted the significance of the European Commission’s decision to allow additional fiscal flexibility for investments in energy security and resilience.
The Minister of National Economy and Finance stressed that this new provision will allow Greece and other European countries to accelerate critical investments in the energy sector, while he described the Commission’s decision to remove Greece from the list of countries with macroeconomic imbalances as “historic,” marking the end of a 16-year period of heightened European surveillance.
Joint statements by Kyriakos Pierrakakis and OECD Secretary-General Matthias Cormann
Kyriakos Pierrakakis: First of all, I would like to congratulate my good friend Matthias Cormann on the successful completion of his first term as Secretary-General of the OECD and wish him an even more successful second term.
We are gathered here today at the OECD to discuss a particularly timely topic: how to properly shape industrial policies for open markets, growth, and prosperity.
A topic that, if I may note, is particularly timely following today’s decision by the European Commission to allow additional fiscal flexibility for investments in energy security and resilience, by making use of the possibilities provided for by national escape clauses under the European Union’s new fiscal rules.
Needless to say, this is also linked to the International Monetary Fund’s recent finding that the impact of the crisis in the Middle East is 12% less severe in Europe than it would have been had we not made the necessary investments in green energy in recent years, that is, from 2022 onward.
Therefore, this is undoubtedly a sector of the utmost importance, in which we must make the necessary and most significant investments as quickly as possible.
Today is also a particularly important day for Greece.
The OECD’s economic forecasts have confirmed the positive trajectory and resilience of the Greek economy, while the European Commission today removed Greece from the list of countries with macroeconomic imbalances.
This is, I would say, a historic decision, marking the end of a 16-year period that included years of trials and challenges for every Greek citizen.
There are two key words here: trust and responsibility.
This decision reflects trust in the Greek economy and Greek society.
But it is our responsibility, as policymakers, to turn that trust into greater prosperity for Greek businesses, Greek citizens, Greek households, Greek society, and the Greek economy as a whole. And we intend to achieve that.
M. Korman: “What Greece has achieved over the past five or six years is truly impressive”
Matthias Korman: It is a pleasure to be here with my good friend and colleague, Greece’s Minister of Finance, Kyriakos Pierrakakis.
We have worked together very productively over the past few years.
I would just like to say that what Greece has achieved over the past five or six years is truly impressive. The turnaround in the country’s trajectory, both in terms of economic performance and fiscal performance, is remarkable. And it is the result of ambitious policy reforms and structural changes.
Greece has done the hard work, and the results are now visible to all: stronger growth compared to much of Europe, a significant increase in employment, and a substantial reduction in unemployment.
There is still ground to cover, yet the trajectory is clearly heading in the right direction—and indeed, in contrast to the trends observed in many parts of the world.
Greece, starting from a very high level of public debt as a percentage of GDP, has managed to put it on a steady downward trajectory, and this trend continues. The country continues to post strong primary surpluses and reduce public debt as a percentage of GDP through a combination of stronger growth and prudent fiscal policy.
We are certainly living in difficult times. This is due both to the short-term pressures caused by the recent conflict in the Middle East and to a series of deeper, long-term structural challenges.
Of course, Greece is not the only country facing such challenges. Countries across the OECD and around the world are grappling with the problem of sluggish productivity growth.
We look forward to continuing to work with our friends and colleagues in Greece to boost productivity—both in Greece and in the rest of the OECD.
Because this will increase incomes, improve citizens’ standard of living, and boost the productivity of our economies.
As I said earlier, it is always a pleasure to be here with my good friend Kyriakos Pierrakakis, and I look forward to our further discussions in the coming days.