Greece's Ministry of National Economy and Finance published an interview with Minister Kyriakos Pierrakakis, who also serves as Eurogroup president, in which he backed the European Commission's proposal for additional fiscal flexibility to support investment in energy infrastructure. Speaking to Euronews ahead of Eurogroup discussions, he said euro area finance ministers do not comment on European Central Bank decisions, but fiscal policy should support vulnerable households without conflicting with monetary policy. He argued that durable reductions in energy costs through investment are a more effective response than relying only on short term relief measures. Pierrakakis framed the policy challenge around three objectives: protecting the most vulnerable households, maintaining fiscal prudence and ensuring long term energy strategy is consistent with short term interventions. He cited an International Monetary Fund estimate that European interventions since 2022 reduced the intensity of the energy crisis by 12% compared with a scenario without the necessary investments. He described the Commission's approach as targeted, temporary and adapted to current conditions. He also said inflation data had been revised upward and growth prospects downward, with indications of stagflationary pressures, but said Europe is not in stagflation. He said the Commission's proposal on energy investment flexibility and other approaches on the table would be discussed at the Eurogroup. On common European borrowing for shared projects, he said views differ, but there is no issue that ministers are unwilling to discuss.

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