Mitsotakis Warns of Difficult Winter as He Calls for EU Flexibility on Energy Costs

Stay connected to Greek City Times for Free on Google News
Click NOW

Greek Prime Minister Kyriakos Mitsotakis has warned that Europe faces a difficult winter as he called for greater European Union fiscal flexibility to help governments support households facing higher energy costs.

Speaking to Bloomberg, Mitsotakis said Greece’s improved fiscal position gives the country some room to support households, but argued that broader European action may be needed to provide additional flexibility.

“At some point, Europe may also need to take a step forward and give us greater fiscal flexibility so that we can support households,” he said.

Mitsotakis pointed to Greece’s fiscal performance, including the achievement of its fiscal targets, a surplus and a significant reduction in public debt.

He stressed, however, that his government would not abandon the fiscal rules that have guided Greece since the debt crisis.

“I am not going to put this success at risk,” Mitsotakis said.

“We will never again go through a crisis like the one we had to deal with a decade ago. Therefore, we cannot move away from our fiscal targets.”

Energy costs and northern Greece

The prime minister linked the energy issue directly to household pressures during the winter, particularly in northern Greece, where heating demand is higher.

He said Greece had already announced a heating oil subsidy and argued that temporary support should be possible without abandoning the country’s longer term energy transition.

“I cannot accept that people in northern Greece […] will not have heating oil to heat their homes,” he said.

Mitsotakis also pointed to Greece’s relatively high fuel taxation, saying a significant reduction would require a European exemption so that lost revenue would not count against the fiscal expenditure indicator the country must meet.

“The only way for me to significantly reduce taxes on fuel is for this to become a European initiative,” he said.

At the same time, he said more than 55% of Greece’s electricity already comes from renewable sources.

Mitsotakis rejects tolls on open sea routes

Freedom of navigation was another major issue in the Bloomberg interview, with Mitsotakis highlighting Greece’s interests as a major shipping nation.

Against the backdrop of attacks in the Red Sea and disruption linked to the Houthis, he said Greece has a “major interest” in restoring freedom of navigation and noted that the country is participating in the European operation in the region.

Mitsotakis also rejected the introduction of tolls or other charges for ships using open sea routes.

“We can never accept tolls. We can never accept any kind of charges for passage through open sea routes,” he said.

He argued that such charges would raise the cost of international trade and could add to inflationary pressures.

Asked about comments from Greek shipowners indicating they could accept such charges, Mitsotakis said the government was “categorically opposed” to the idea.

He argued that shipping companies could ultimately pass additional costs on to consumers.

The prime minister also said Europe could play a greater role in the Gulf region if the countries involved agreed to such an approach, while stressing that military assets would not be deployed while hostile fire continued.

Greece seeks more foreign investment

The Bloomberg interview also covered Greece’s efforts to attract international investors, businesses and highly skilled workers.

Mitsotakis said government representatives had held meetings in London and New York with major investors and hedge fund managers to identify what changes could encourage them to establish operations in Greece.

He pointed to subsequent adjustments to the regulatory framework and cited the presence of investors and companies including Chris Rokos and Millennium.

“Greece is not just a place to visit. It is also a place to do business,” he said.

The prime minister highlighted Greece’s tax framework, quality of life and skilled workforce as factors that could attract international businesses.

He specifically referred to engineers and technology workers, saying companies establishing offices in Greece can access specialised personnel at costs that remain competitive with other European markets.

Mitsotakis was also asked about the next president of the European Central Bank but did not endorse a specific candidate.

He said Greece already has an important institutional role through the presidency of the Eurogroup and noted that several major European positions are due to open.

He also linked investment and job creation to efforts to encourage Greeks who previously left the country to return, saying new business opportunities could help address the loss of skilled workers experienced during earlier periods.

Stay updated with the latest news from Greece and around the world on greekcitytimes.com.
Contact our newsroom to share your updates, stories, photos, or videos. Follow GCT on Google News and Apple News.