European Stability Mechanism:Statement by Pierre Gramegna following meeting with Greek Finance Minister Kostis Hatzidakis

 

Statement by Pierre Gramegna following meeting with Greek Finance Minister Kostis Hatzidakis 14 March 2025 ESM Press Release no. 5/2025   We discussed many topics. One topic that was usually on the agenda took less space this time: that is the macroeconomic situation in Greece, which is very reassuring. Greece has been growing more than 2% in the last three years, which is double the average of the euro area. Debt is decreasing in a convincing manner. It has been halved in the last ten years. There is no major concern about that at the moment. The reason I came here is that I am visiting many euro area countries to understand how they perceive the geopolitical challenges ahead. One of these challenges is the ongoing war in Ukraine following Russia's aggression. This war is at Europe's doorstep, and the European Union must determine how to respond. It presents challenges in terms of security and defence. We also discussed the financial sustainability of Europe and of Greece. Defence spending needs will be significant, and it is crucial for countries to take that into account to ensure budgetary flexibility. This may require reprioritisation and making the best use of the European Union’s Recovery and Resilience Fund. The digital and energy agendas are key aspects of this fund, and they can be highly beneficial for the Greek economy.

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