Kyriakos Pierrakakis is not simply making history for Greece, he is opening a new chapter for the entire Eurozone. His election to the presidency of the Eurogroup, the top economic policy body of the 20 member states of the euro area, constitutes only the beginning. With the assumption of this role, he automatically also assumes leadership of the European Stability Mechanism (ESM), the European Stability Mechanism that functions as the “safety valve” for the stability of the economies of the euro area.
The unthinkable has become reality
What for many European countries seemed ten years ago difficult or even unthinkable has now become reality: the Greek Minister of Finance, after the economic crisis that called into question the country’s place in the euro, is today called upon to lead the two most critical institutions of economic governance in Europe. As President of the Eurogroup, Kyriakos Pierrakakis undertakes the coordination of the economic policies of the countries that share the euro, a role of strategic importance that includes shaping common positions on fiscal matters, investments, economic growth, and the preparation of Eurozone summits. His election took place with a clear majority and broad support from his counterparts, including major member states such as Germany, a fact that reflects a strengthened climate of trust in his candidacy.
The presidency of the Eurogroup also opens the door to another crucial role, that of head of the ESM, as the two roles are institutionally linked. This means that the Greek minister does not only assume the coordination of Eurozone economic policies, but also acquires institutional control over the mechanism that manages critical loans and support tools for member states. This mechanism was created in 2012 in the shadow of the European debt crisis and particularly the Greek one, in order to support member states during periods of intense economic pressure, and today constitutes a key tool for safeguarding the robustness of the economies of the euro area.
The ESM granted loans amounting to 61.9 billion euros which, together with those from the European Financial Stability Facility (EFSF), amounted to 86 billion euros within the framework of the third support program 2015 to 2018.
In the case of Greece, the ESM granted loans amounting to 61.9 billion euros which, together with those from the European Financial Stability Facility (EFSF), amounted to 86 billion euros within the framework of the third support program 2015 to 2018. These loans were linked to tough reforms and measures for the pension system, taxation, and the public sector. Greece, after the completion of the third memorandum, proceeded with scheduled early repayments of loans with the approval of the ESM. Kyriakos Pierrakakis, as the new head of the ESM, will have a say on issues of financing, debt restructuring, and the monitoring of economic adjustment and stability programs.
The dual assumption of leadership by a Greek minister marks a historic moment for the country. Greece is upgraded and moves from the era of crisis to the era of leadership and recognition. This move shows not only that the country has overcome many of the trials of the previous decade, but also that European institutions now view Greece as a reliable partner that can actively contribute to shaping key decisions for the European project.
The steady support and positive reception from European capitals demonstrate that the country’s position has been significantly strengthened. Cooperation with other member states, understanding of common challenges, and Pierrakakis’ ability to build bridges between different economic and political approaches appear as elements that contributed to the dual assignment of these leadership positions.
With the assumption of his duties both as President of the Eurogroup and as head of the ESM, Kyriakos Pierrakakis becomes one of the most central figures on the European economic stage, responsible for policy coordination, investment planning, and stability management in a demanding geoeconomic environment.
www.bankingnews.gr
Σχόλια αναγνωστών