The new, changing security environment and the new economic reality call for a change in the fiscal rules of Europe, said Alternate Minister of Foreign Affairs, Miltiadis Varvitsiotis, speaking at the online event themed "The War in Ukraine and the Next Day of the Stability and Growth Pact" held on Thursday, March 18, under the auspices of the Ministry of Foreign Affairs and the Institute for Mediterranean Studies in the framework of the Conference on the Future of Europe.
In his speech, Mr. Varvitsiotis pointed out that the increase in fuel prices, the spike in inflation globally, problems in the supply chain and the adequacy of raw materials and food, the need for independence from Russian gas and the strengthening of the EU’s defence dimension result in a mix that necessitates a reform of budgetary orthodoxy in Europe.
In particular, the Alternate Minister made mention that the EU should develop mechanisms to curb speculation in the fuel market while it is already discussing an energy package of between 100 and 200 billion euros, in order to support households and businesses. Mr. Varvitsiotis underscored that one of Greece's aspirations is the suspension for another year of the application of the strict fiscal rules, while regarding the Stability Pact, the Alternate minister noted that "we seek the exclusion of defense expenditures from public debt and deficit".
Mr. Varvitsiotis underlined that the EU needs to significantly enhance its defense dimension in order to face existential threats such as the Russian threat, while defense investments should be primarily and to a great extent directed to the European economy itself, to a European defense industry that will be able to meet current challenges.
The event was addressed by Gikas Hardouvelis, Professor at the University of Piraeus and Chairman of the Board of the National Bank, Napoleon Maravegias, Professor at the University of Athens, Panagiotis Liargovas, Professor at the University of Peloponnese and Chairman of the Centre of Planning and Economic Research (KEPE), and Lina Kostelletou, Professor at the University of Athens.
The discussion was moderated by journalist Antonis Papagiannidis.
March 18, 2022