The need for the European Union to boost investment in the energy sector in order to safeguard its economic independence and permanently reduce costs for households and businesses, Kyriakos Pierrakakis emphasized in an interview with Euronews.
The Minister of National Economy and Finance noted that European governments are called upon to strike a balance between supporting the most vulnerable citizens, fiscal prudence, and financing long-term investments. As he noted, the measures implemented since 2022 have helped reduce the impact of the energy crisis on the European economy by 12%, according to IMF estimates.
In the context of the discussion on potential additional fiscal flexibility regarding energy expenditures, Mr. Pierrakakis emphasized that, just as defense investments are linked to Europe’s freedom, so too are energy investments linked to its economic independence.
Referring to the economic outlook for the Eurozone, he noted that there are signs of a slowdown in growth and increased inflationary pressures, though there is no cause for concern about stagflation. “We are not facing the worst-case scenario, but neither are we in the best possible one,” he said, adding that European institutions are closely monitoring developments and adapting their policies to the new circumstances.