Prime Minister Kyriakos Mitsotakis is heading to Split, Croatia, on Wednesday for a MED9 summit that will bring together the leaders of nine southern European countries ahead of crucial European Union negotiations later this month.
The meeting comes just days before the first EU summit of the new political season, scheduled for October 15-16, with governments facing renewed pressure over energy prices, inflation and demands for greater support for households and businesses.
Mitsotakis has warned that the coming winter could prove even more difficult as geopolitical developments increasingly affect the economy.
“Geopolitical upheavals are also becoming economic,” Mitsotakis said Tuesday at the annual general assembly of the Hellenic Federation of Enterprises. “A month ago, I warned about a difficult winter. Today I say that it may be shaping up to be even more difficult.”
Pressure across southern Europe
The economic pressures are already having political and social consequences elsewhere in southern Europe.
In Spain, a housing crisis has brought Prime Minister Pedro Sánchez’s government up against mass protests and a parliamentary deadlock. The rejection of emergency housing measures led Sánchez to call early elections.
In France, student protests over shortages and school funding have spread, with teachers and parents joining the demonstrations and adding another source of pressure on the French government.
At the same time, negotiations over the EU’s next Multiannual Financial Framework are intensifying debate over the bloc’s priorities and how they should be financed. Rising yields in international bond markets are adding to the challenge.
With winter approaching, fuel and energy costs are a common concern for governments seeking to support households and businesses without undermining fiscal stability.
Energy, competitiveness and migration
The MED9 meeting will be attended by European Council President António Costa and European Commission President Ursula von der Leyen.
The summit will give the nine leaders an opportunity to seek common positions ahead of negotiations at the European level. Competitiveness, energy security, migration, and developments in Iran and the Middle East are expected to feature prominently on the agenda.
Mitsotakis is expected to argue that the new energy crisis highlights the European economy’s competitiveness deficit and the need for the European Union to reduce critical dependencies.
For Athens, the discussion should be linked to everyday economic concerns, including affordable prices, better jobs and higher wages.
The Greek prime minister is also expected to reiterate that Europe needs to find ways to support households and businesses facing higher energy prices, which are creating renewed inflationary pressures.
At the same time, he is expected to stress that any European response must be compatible with fiscal stability and sustainability, as demands for support are growing faster than the available fiscal space.
The nine leaders will also discuss the Mediterranean’s position in the current geopolitical environment and the protection of its resources.
Mitsotakis to meet Rubio in Athens
Mitsotakis’ stay in Croatia will be brief. He is expected to return to Athens after the summit’s proceedings to meet U.S. Secretary of State Marco Rubio at the Maximos Mansion at 7 p.m.
