ATHENS – [ANA-MPA]
Εurope must act quickly to restrict pressures and protect its economies and citizens if high energy prices persist, Eurogroup President Kyriakos Pierrakakis told Reuters on March 13.
As Pierrakakis noted, the impact of an extended conflict in the Middle East will be inevitably reflected in energy markets, transport costs, financial markets, and at the final end, in consumer prices. Although nobody can predict with certainty how long the current crisis may last, he added, the European economy is resilient enough to absorb such shocks but must move faster to boost the EU’s competitiveness.
The Eurogroup president and Greek economy minister said that one of his primary priorities is the Savings and Investments Union, as well-functioning and competitive financial markets are of crucial importance.
Specifically referring to Greece, he said that the state budget has taken into account the worst possible scenario, noting however that even under those conditions, Greece’s economic growth will remain close to 2%, which shows that the Greek economy remains strong and resilient.
Pierrakakis also stressed that the recently introduced caps on profit margins in fuel and food will not impact the state budget, neither are there indications currently that tourism and investments will be affected.
Reuters noted in the news story that the cost of energy is the focus of European talks, as oil prices have risen by about 37% since the start of the war, raising concerns over their inflationary impact and pressuring European governments into helping households and businesses. In this context, the EU is planning to invest heavily in clean energy, infrastructure, and energy network projects, while it is looking into the additional funding of small modular reactors (SMRs) to reduce energy dependence on oil imports.
