The energy crisis, the cost of living and the need to strengthen the competitiveness of the European economy will be the dominant issues on the agenda of the two-day summit, which Kyriakos Mitsotakis will also attend.
At a time of heightened geopolitical uncertainty, with developments in the Strait of Hormuz and the war in Ukraine fuelling fresh pressure on energy prices, Athens is seeking a coordinated European response, with an emphasis on protecting households and businesses.
The prime minister’s message is that national measures, however necessary, are not enough to tackle a crisis of international scale. As he said in remarks in Larissa yesterday, this winter is expected to be difficult, as geopolitical tensions are causing disruption in oil and gas markets, fuelling inflation and raising the cost of living.
Discussions in Brussels are expected to focus on whether the EU can establish a broader support framework, enabling member states to respond to the pressures without jeopardising fiscal stability.
A key aim for Athens is to secure recognition of the need for targeted, temporary support measures, particularly for households and small and medium-sized businesses, ahead of a difficult winter. The prime minister is expected to stress that the European response cannot be limited to general recommendations to curb consumption, but must be accompanied by concrete decisions and appropriate fiscal tools.
He will also highlight the need to support European industry and shipping, which are affected by rising energy costs and disruption to international trade. The aim is to prevent further pressure on European production and limit the risk of losing competitiveness against other major economies.
According to government sources, Kyriakos Mitsotakis will reiterate the importance of completing the European energy market and developing energy interconnections, while also noting that measures are needed both in the short and medium term.
The green transition remains a long-term goal, but the latest crisis has brought energy security and costs back to the fore. Athens believes European policy must adapt to the new realities, as the persistence of high energy prices, support for industry, financing the green transition and fiscal discipline present a difficult balancing act for member states.
Letta and Draghi
The energy crisis is directly linked to the broader issue of the competitiveness of the European economy, which is also a key topic at the summit. The prime minister will press for the proposals in the Letta and Draghi reports to be implemented, with the aim of strengthening the single market, reducing the EU’s critical dependencies and improving the business environment.
He will also point out that progress in simplifying European legislation and advancing the so-called “28th regime”, which aims to make it easier for businesses to operate in the single market, has yet to meet expectations. Accelerating the relevant initiatives is considered crucial to enabling European businesses to grow in a more competitive international environment.
The new Multiannual Financial Framework is also an important area for negotiation, with discussions continuing on the basis of the revised negotiating framework prepared by the Irish presidency.
Greece’s position is that the Union’s increased ambitions cannot be achieved with fewer resources. Athens supports an ambitious European budget that will meet new needs in defence, security, research and innovation, without shifting the cost onto Cohesion Policy and the Common Agricultural Policy.
Greece does not intend to accept further cuts in these areas, while keeping open the discussion on creating new EU own resources. A key condition is that the distribution of costs should not disproportionately burden less developed economies.
The agenda also includes EU enlargement and migration. For Athens, enlargement is a strategic investment in Europe’s security and stability, with each candidate country’s progress dependent on meeting the accession conditions.
Greece does not support changing the EU’s decision-making process and believes the Union’s internal reforms and enlargement should be treated as separate processes.
On migration, the prime minister is expected to insist on protecting the external borders and establishing an effective European mechanism to deal with emergencies involving mass arrivals or the instrumentalisation of migration flows, as happened in Evros in 2020.