In a televised interview, Greece’s Minister of National Economy and Finance Kyriakos Pierrakakis set out the government’s approach to the inflationary shock linked to disruption around the Strait of Hormuz, saying policy will continue to rely on targeted, temporary support measures alongside regulatory interventions such as price caps. He framed the International Monetary Fund’s forecasts as conservative and indicated that Greece’s broader strategy remains unchanged, with further steps calibrated to how long the crisis persists. Measures referenced included horizontal support for diesel, a fuel pass for unleaded fuel aimed at those most in need, and support to offset fertiliser price increases. Pierrakakis pointed to the IMF’s 1.8% growth forecast versus a 2.4% assumption in the national budget and cited inflation at 3.5%, while noting he expects inflation to come in somewhat lower than that figure. On public finances, he said primary and overall surplus outcomes are expected to be revised upward versus expectations, but stressed that any additional spending is constrained by the European Union’s expenditure rule and requires agreement with Brussels. He also described the potential scale of the energy shock, citing an oil supply loss of 13 million barrels per day and an annualised natural gas shortfall of 110 billion cubic metres (bcm), and noted that around 80 energy installations in the Middle East have been affected, with about 30 sustaining very serious damage. Pierrakakis said final surplus figures would be available in the coming days and that the government will assess fiscal space and the evolving energy situation before deciding on any further interventions. He also noted EU-level discussion is focused on targeted, temporary and fiscally responsible measures that do not undermine the European Central Bank’s inflation containment efforts, adding that a broader European response could shift if the depth of the crisis proves greater.
Ministry of National Economy and Finance (Greece)2026-04-16
Greece’s Ministry of National Economy and Finance reiterates targeted fuel and fertiliser support and signals higher-than-expected surplus within EU spending rules
Greece’s Minister of National Economy and Finance Kyriakos Pierrakakis said the government’s response to the inflationary shock linked to disruption around the Strait of Hormuz will rely on targeted, temporary support measures and regulatory interventions such as price caps, calibrated to the crisis. He highlighted existing fuel and fertiliser support, called International Monetary Fund growth and inflation forecasts conservative, and said primary and overall fiscal surpluses are likely to be revised upward, though extra spending is constrained by the European Union’s expenditure rule and coordination with Brussels. He added that EU discussions focus on targeted, fiscally responsible measures that do not undermine the European Central Bank’s inflation containment efforts, with any broader response depending on how the energy shock evolves.