Greece's Ministry of National Economy and Finance published a Bloomberg TV interview in which Minister of National Economy and Finance and Eurogroup President Kyriakos Pierrakakis said Europe is facing a stagflationary tilt as the Middle East-related energy shock pushes growth forecasts lower and inflation forecasts higher, but that the current European response remains appropriate. Support should stay targeted, tailored and temporary within the European Commission's framework, and any broader European Union level fiscal response should depend on the duration and severity of the crisis. He said Europe is better prepared than in 2022 because energy supplies are more diversified and networks have seen more investment, while the priority is to support those most affected without turning an energy crisis into a fiscal crisis. Higher debt and deficit levels, the new fiscal rules and the already activated defence escape clause all need to be taken into account. On trade, he said the European Union had fully met its commitments under the joint declaration and legislative timetable for implementing a trade agreement with the United States, with dialogue the preferred option but all alternatives available if the agreed path is not respected in practice. Pierrakakis also said the Eurogroup could see progress very soon on the Savings and Investment Union, including market supervision packages and more centralised supervision of capital markets to help European firms scale using European financing. He pointed to the SAFE instrument and the defence escape clause as current financing tools, said joint procurement could be expanded further, and described artificial intelligence as a major issue in current and forthcoming finance ministers' discussions.

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