European coordination is essential to address the housing challenges facing citizens across the continent, Greek Finance Minister Kyriakos Pierrakakis said ahead of a Eurogroup meeting in Nicosia, stressing that housing has become a key issue of social cohesion and economic stability.

Speaking to reporters before the gathering of eurozone finance ministers, Pierrakakis argued that although housing policy is not a core competence of the European Union, it remains an issue that directly affects millions of Europeans and therefore deserves greater attention at the European level.

“Housing is a matter of social cohesion,” he said, adding that finance ministers cannot ignore issues that are at the center of public concern. He also described housing as an economic issue, calling for stronger cooperation among member states so governments can learn from each other’s successful policies and avoid approaches that have proven ineffective.

Europe Faces Economic and Energy Pressures

Pierrakakis said the latest forecasts from the European Commission still point to positive economic growth despite a more challenging outlook. Growth projections have been revised downward while inflation expectations have increased, but he maintained that Europe remains on a positive growth path.

He acknowledged what he described as “stagflationary pressure” but emphasized that Europe continues to demonstrate resilience. Any support measures, he said, should follow the same principles adopted during previous crises: they must be temporary, targeted and tailored to specific needs.

Concern Over Middle East Uncertainty

The minister also pointed to uncertainty stemming from developments in the Middle East, particularly regarding the Strait of Hormuz. He warned that a prolonged disruption could worsen economic conditions in the coming months.

According to Pierrakakis, eurozone finance ministers are closely monitoring the situation and coordinating their responses. He stressed that governments must support households and businesses without jeopardizing fiscal stability.

“We must not allow this energy crisis to turn into a fiscal crisis,” he said, calling for careful and precise policy decisions.

Digital Euro and European Sovereignty

Another key topic on the Eurogroup agenda is the digital euro. Pierrakakis linked the initiative to Europe’s financial independence, arguing that it is important for strengthening the international role of the euro and enhancing the bloc’s financial sovereignty.

Emphasis on Resilience

Concluding his remarks, Pierrakakis reiterated that Europe is not currently experiencing stagflation despite existing pressures. While acknowledging emerging risks, he said resilience remains the defining characteristic of the European economy.

“The key word for Europe is resilience,” he said.