Greek Prime Minister Kyriakos Mitsotakis is seeking support from European allies for a stronger EU response to rising energy prices and the inflationary pressures they are creating, as Mediterranean leaders meet Wednesday in Croatia ahead of a key European Council summit.
The energy crisis, both in terms of security and prices, is high on the agenda of the MED9 summit in Split. The meeting comes one week before EU leaders are due to gather in Brussels on October 15 to consider whether emergency measures are needed and what form they should take.
The MED9 group comprises Greece, France, Italy, Spain, Cyprus, Croatia, Malta, Portugal and Slovenia. European Council President António Costa and European Commission President Ursula von der Leyen are also attending the meeting. Spanish Prime Minister Pedro Sánchez canceled his trip because of a crisis in his country.
French President Emmanuel Macron and Croatian Prime Minister Andrej Plenković are scheduled to open the day’s meetings with a bilateral meeting.
Greece calls for fiscal flexibility
Mitsotakis has sent a letter to von der Leyen, as has Italian Prime Minister Giorgia Meloni, calling for greater European fiscal flexibility to help households and businesses cope with higher energy prices.
Greece’s proposal is for additional VAT revenue generated by energy-driven inflation to be used for targeted and temporary support measures.
Mitsotakis is also expected to argue that Europe must respond to the difficult circumstances by finding ways to support citizens and businesses without undermining fiscal stability and sustainability.
He reiterated Tuesday, during an intervention at a conference organized by the Greek newspaper To Vima, that the crisis over fuel prices “is not only a Greek but a global problem.”
Energy, competitiveness and the Middle East
Beyond energy security and prices, the MED9 leaders are expected to discuss the competitiveness of the European economy, migration and the latest developments in Iran and the Middle East.
The summit is intended to help coordinate positions and gauge the mood among European governments ahead of the European Council meeting in Brussels on October 15-16, amid continued uncertainty.
Developments in Iran are adding to pressure on energy prices and inflation, while yields in international bond markets have also risen. At the same time, European capitals and Brussels are engaged in negotiations over the EU’s next Multiannual Financial Framework, the bloc’s long-term budget.
The leaders are also expected to discuss the Mediterranean’s position in the current geopolitical environment and the importance of protecting the region’s resources.
On competitiveness, Greek officials say Mitsotakis will argue that the new energy crisis has exposed a “competitiveness gap” in the European economy. Greece’s position is that stronger competitiveness should translate into lower prices and better jobs.
Three meetings in Split
Three successive meetings are scheduled in Split, the largest city on Croatia’s Dalmatian coast, under the chairmanship of Plenković.
The first MED9 leaders’ session is titled “A Resilient Mediterranean at the Heart of a Stronger Europe.”
The second session, “Cooperation for a Sustainable and Prosperous Mediterranean,” will include Prince Albert II of Monaco and Jordan’s Crown Prince Al Hussein bin Abdullah.
A working lunch will focus on “The Uncertain Geopolitical and Geoeconomic Horizons of the Middle East: Navigating a Divided Environment.”
The leaders are expected to issue joint statements at 3:30 p.m. local time. Mitsotakis will then return to Athens, where he is scheduled to meet at 7 p.m. with U.S. Secretary of State Marco Rubio at the Maximos Mansion, the official office of the Greek prime minister.
Rubio is scheduled to leave Athens for Lisbon on Thursday morning.
