The Minister of National Economy and Finance and President of the Eurogroup, Kyriakos Pierrakakis, argues in an interview with “Eleftheros Typos on Sunday” that the Greek economy is showing increased resilience in the face of the prolonged energy crisis, citing 2% growth in the first quarter, a 12.1% rise in investment, and the positive contribution of exports.
At the same time, he acknowledges that inflation remains the public’s primary concern and notes that government policy combines cost-containment measures with income support through wage increases, tax relief, and targeted support for families.
Minister, the energy crisis is now in its fourth month, and no one can predict how long it will last. If it continues into 2027, how serious is the risk to the European economy, and how resilient is Greece?
The 2% growth recorded by the Greek economy in the first quarter is perhaps the most meaningful answer to this question. This is because it was achieved amid an energy crisis, geopolitical tensions, and a European environment that is nearing stagnation.
Even more important is what lies behind that 2%. Investment rose by 12.1%, well above forecasts, exports contributed positively to growth, and consumption maintained its momentum.
This shows that Greece is much more resilient today than it was a few years ago. We are not invulnerable—no economy is invulnerable—but we have stronger public finances, lower unemployment, more investment, and greater openness to the outside world.
If the crisis continues into 2027, there will be challenges for all of Europe. But Greece will face them from a clearly better position than in the past.
Inflation in Greece has been higher in recent months than in most European Union countries. To what do you attribute this, and what initiatives have you undertaken to address its impact on household budgets?
I know that for many citizens, the discussion about the economy begins and ends with one question: will we make it through the month or not? That is why inflation remains one of the greatest challenges we face.
In recent years, Greece, like the rest of Europe, has faced an unprecedented global inflation crisis, with cumulative inflation in our country reaching approximately 20%. Our response has been twofold: limiting price pressures and boosting incomes.
We supported production with measures such as subsidizing agricultural diesel and reducing the cost of fertilizers, while we are helping families with initiatives such as the €150 per child allowance.
At the same time, we have increased incomes. The minimum wage has risen by 46% since 2019, significantly more than cumulative inflation, while we have reduced taxes and social security contributions and are implementing the most extensive tax reform in decades.
The battle against inflation is not over. The lasting solution, however, lies in creating more and better-paying jobs and continuously increasing citizens’ disposable income.
This month, you are introducing new measures for private debt, such as the expansion of the out-of-court mechanism, the 72-installment plan, and the release of frozen accounts. What is the goal of these interventions? Can they lead to a substantial reduction in private debt?
Policy is not made from on high. When a citizen wants to pay but cannot, when a family worries about their home, or a business struggles to stay afloat, then we have a duty to intervene. Their problem is our problem. That is why we are designing measures that provide real second chances, not just solutions on paper.
To that end, we are lowering the threshold for the out-of-court mechanism to 5,000 euros, expanding access to approximately 1 million citizens. At the same time, we are moving forward with 72 installments, raising the exemption limit from 1,250 to 1,600 euros, allowing for the release of frozen accounts, and improving the framework for protecting primary residences. This is the largest package of measures for private debt since the crisis.
The results show that this policy is working. Since the out-of-court mechanism began operating, more than 62,600 successful settlements have been completed, corresponding to initial debts of 19.2 billion euros.
This means that tens of thousands of our fellow citizens have found a way to settle their obligations and move forward. As long as there is even one citizen, one family, or one business that wants to be responsible but is struggling, we have an obligation to seek new solutions.
I’d like to focus briefly on the 72-installment plan, which covers debts through the end of 2023. Eligibility requires that new debts incurred on or after January 1, 2024, be settled under the standard repayment plan. What additional revenue does the ministry expect from the new arrangement?
The 72-installment plan for old debts through the end of 2023 is something citizens have been asking for for a long time. We listen to the public. To be precise, it is the needs of citizens that guide our decisions. The aim of the arrangement is to assist citizens who wish to remain consistent in meeting their obligations. That is why newer debts should be included in the AADE’s standard settlement program, so as not to create a new cycle of debt but rather a sustainable repayment path.
Potentially, the arrangement affects approximately 1.5 million citizens. Of course, this number includes debts dating back many years, for which we know that collection is extremely difficult in many cases.
The platform will open this summer and remain open until December 31.
We are not here to punish those who have struggled. We are here to help those who want to get back on their feet, settle their outstanding debts, and move forward.
Recently, the European Commission announced the energy escape clause, creating additional fiscal space for member states. How does Greece intend to make use of it? Will the emergency support measures for households and businesses continue, if necessary?
The extension of the national defense escape clause to include energy investments is an important European decision, because it recognizes that energy security is not just a national matter but a European priority.
For Greece, this creates additional fiscal space in the coming years, which we intend to utilize responsibly and with strategic focus. The clause is a tool for investments that strengthen the country’s energy security, reduce energy costs and dependencies, and improve the economy’s competitiveness.
Beyond that, emergency support measures are not a permanent policy. When extraordinary circumstances arise, as has happened in previous years, the government intervenes to support households and businesses.
As we approach the Thessaloniki International Fair, there are reports that the focus will be on measures to support the market and small and medium-sized enterprises. Will there be provisions for wage earners and retirees who continue to be squeezed by inflation, or do you believe that the benefits of last year’s tax reform are sufficient?
First of all, I do not accept this dichotomy. An economy does not move forward when it chooses between businesses and workers. It moves forward when it creates more wealth and ensures that it is fairly returned to society.
Since January, the largest tax reform of the past decades, amounting to 1.76 billion euros, has been implemented. It supports families, young people, and regional areas, while simultaneously boosting business competitiveness and investment incentives.
Wage earners and retirees have already seen increases in their disposable income through tax relief. Beyond that, decisions regarding the Thessaloniki International Fair will be made based on available fiscal space.
The Prime Minister has made it clear that elections will be held in the spring of 2027. Nevertheless, election speculation persists, and many believe the country has already entered an election season. When will the polls finally open?
The Prime Minister has answered this question many times. The elections will take place at the end of the four-year term, in the spring of 2027.
I understand that election speculation is a favorite pastime in political life. However, the country faces significant challenges. We have a war in our neighborhood, an uncertain international environment, and yet the economy is growing, unemployment is falling, and important reforms are being implemented.
Our priority is not the next election. It is to make the most of every day of the mandate the citizens have given us and to honor our commitments to them. When the time comes to vote, the citizens will judge our work.
Mr. Tsipras has returned to the political scene. Do you consider ELAS to be a new party or a continuation of SYRIZA? Is Mr. Tsipras the main rival of New Democracy at the polls?
I will not tell Mr. Tsipras how to describe his political project. What the citizens know, however, is his political legacy. The advantage citizens have today is that they don’t need to imagine Mr. Tsipras. They remember him. That is why the question of the upcoming elections is not who is returning. It is who can govern. A vote is an entrustment of responsibility.
PASOK states that it would not cooperate with New Democracy, even as it faces strong public pressure from the parties of Tsipras and Karistianos. Do you believe this strategy could cost it even second place in the elections?
I won’t get into the debate about who will come in second. Usually, those who constantly discuss second place do so because they have already accepted that they are not vying for first. PASOK will chart the strategy it deems correct, and the citizens will evaluate it. We are focused on our own work.
At the end of the day, the crucial question is not who leads the opposition. It is who can govern the country in a world that is becoming increasingly uncertain.
A few days ago, Gov.gr marked its sixth anniversary. You were the minister who spearheaded its creation. Looking back on this journey today, do you believe that the digital transformation of the state has permanently changed Greece, and what is the next major step?
For decades, we had resigned ourselves to the idea that the Greek government never changes and that bureaucracy is invincible. Gov.gr proved the opposite. It proved that Greece can plan, implement, and achieve major reforms. That it can move from “it can’t be done” to “it can be done.”
Now the next major chapter lies ahead of us: the “smart state.” A state that will leverage Artificial Intelligence and data to anticipate needs, further reduce bureaucracy, and provide better services to citizens. If Gov.gr was proof that “it can’t be done” can become “it can be done,” the “smart state” is the next big step.
Recently, the Supreme Court issued its ruling on interest rates for loans under the Katseli Law. You have stated that the ministry is carefully examining its implications. Should we expect some legislative action on this specific issue?
The Supreme Court’s decision is a significant development, and that is why we are examining it with due care. This is an issue that affects thousands of borrowers, but at the same time is linked to the overall architecture of private debt management in the country.
We are currently carefully assessing the legal and practical implications of the decision. What I can say is that the government always acts with a sense of responsibility, steering clear of empty promises and oversimplifications.
Managing private debt requires a delicate balance. Our goal is to protect citizens who are truly in need, without creating new risks to financial stability or shifting the burden onto taxpayers.
I know that the opposition often opts for easy answers to complex problems. We will not take that approach. We will examine all the facts with seriousness and make decisions that serve the public interest, borrowers, and the stability of the economy as a whole.