New Eurogroup President tells MEPs Europe needs to "play offence"

On Tuesday, MEPs held their first discussion with the new Eurogroup President Kyriakos Pierrakakis.

The meeting, which took place in the Economic and Monetary affairs committee, is part of the Economic dialogue oversight mechanism.

Opening the meeting Mr Peirrakakis told MEPs that uncertainty was becoming the new operating environment but that this should not mean that Europe should not believe in itself. He argued that Europe could weather the current economic shocks and should not only aim at being resilient but rather “play offence”, actively tackling the challenges ahead and capitalising on the available opportunities. This would require wide ranging reforms on the agenda to acquire more sovereignty, he said, while then outlining some of the key areas to achieve this.

Asked by MEPs what were the most important things to be delivered in the next twelve months, Mr Pierrakakis mentioned the digital euro, a completed banking union with bigger and stronger banks, and the development of a “technological doctrine” regarding financial instruments.

Quizzed further on the digital euro, he stressed that it was rapidly needed or else Europe would miss out on a “huge opportunity”.

MEPs also asked if enough was being done to achieve the Savings and Investments union. Mr Pierrakakis said that European leaders were not yet realising the opportunity cost of missing out on creating such a union, adding that although all agreed on paper of its necessity, in practice it was not yet evident to some that “sovereignty is not synonymous to autonomy”.

Asked about how to best prepare for the rapid changes being brought about by technology, especially artificial intelligence, the Eurogroup President said that the key would be to help those most negatively affected, especially through reskilling. For this a change in the educational system across Europe would be required, he added.

MEPs asked various other questions, including about what Eurozone member states with financial difficulties should prioritise, how to protect fiscal discipline and sound economic policy in these difficult times, whether it was again time to consider Rolling out a windfall tax, and what should be done to advance the agenda of joint borrowing.