Greek Finance Minister Kyriakos Pierrakakis has said that reforms—not crises—will determine Europe’s position in the world, stressing that investment in technology has become a matter of European sovereignty.
Speaking to CNBC, Pierrakakis described the eurozone economy as “resilient,” despite ongoing geopolitical uncertainty and a more challenging fiscal environment.
“We do not choose the crises we face, and they will not define us,” he said. “We can choose the reforms, and those are what will ultimately define us.”
According to the minister, Europe’s priority should be implementing policies capable of delivering stronger economic growth in the coming months and years.
Middle East tensions weigh on outlook
Pierrakakis expressed hope that recent tensions in the Middle East would prove temporary, noting that oil prices fell significantly following the agreement between the United States and Iran.
However, he said the regional crisis had led to lower growth forecasts and higher inflation expectations for this year.
Despite these pressures, he said discussions among eurozone finance ministers remain focused on the bloc’s economic fundamentals, competitiveness and long-term resilience.
AI investment is a matter of sovereignty
A central theme of the interview was artificial intelligence, which Pierrakakis described as both a major economic opportunity and a strategic challenge.
He argued that Europe must develop a clear technology strategy backed by substantial investment, saying technological sovereignty can only be achieved through a coordinated European approach.
According to Pierrakakis, AI has the potential to deliver significant productivity gains while also exposing vulnerabilities in financial systems and critical infrastructure.
He compared the development of artificial intelligence to “both a race to the Moon and a nuclear arms race,” highlighting both its transformative benefits and its potential risks.
Europe must back its own AI champions
Pierrakakis said Europe should strengthen its own technology companies by creating the right investment environment and making better use of the EU single market.
He noted that the CEO of French AI company Mistral had been invited to attend the Eurogroup meeting to discuss ways of supporting the growth of European artificial intelligence firms.
The minister argued that Europe needs not only greater investment but also stronger innovation ecosystems and a more integrated capital market to help technology companies compete globally.
He added that advancing the Savings and Investment Union should remain a key priority for both the Eurogroup and the European Union.
Borrowing costs require close monitoring
Asked about rising government borrowing costs across the eurozone, Pierrakakis acknowledged that fiscal conditions are more demanding today than they were in 2022, with higher public deficits and debt levels.
He said eurozone finance ministers are closely monitoring developments and will take appropriate measures once there is a clear assessment of the economic situation.
Despite the challenges, Pierrakakis maintained that resilience remains the defining characteristic of the eurozone economy and reiterated that long-term reforms will be more important than short-term crises in shaping Europe’s future.
