By Michalis Psilos

 

 

"The energy crisis highlights in a compelling way the need for a common European energy policy. The needs of the economy impose a common policy," Minister of National Economy and Finance, Kostis Hatzidakis, said.

 

Hatzidakis participated in the Eurogroup and ECOFIN meetings held in Brussels, speaking about the issue of the impact of energy prices on the competitiveness of the European economy.

 

In the speech, Hatzidakis underlined that the EU must move in 2 directions:

 

– A common plan for energy networks with geographically distributed production centers.

 

– A unified economic plan in order to have economies of scale and stop the phenomenon of indirectly undermining one country's plans.

 

Hatzidakis noted that in this context it is appropriate to promote the energy interconnection of Europe with the countries of the south-eastern Mediterranean, stressing that in addition to strengthening energy security, the EU geopolitical interests are also served in this way.

 

During the discussion with representatives of the IMF on the path of the eurozone economy, Hatzidakis focused on the need to complete the Banking Union and the Capital Markets Union, while he reiterated the commitment of the Greek government to continue following the path of fiscal responsibility, regardless of the new fiscal rules agreed last December. And he noted that "after the painful experience of the past decade, we will do everything we can to keep the IMF away from Greece. It is already clear that the Greek economy has entered a completely different upward path, which is also recorded in the IMF reports."

 

Measures to boost businesses

 

The European Commission is planning bold measures to strengthen businesses, in order to face competition problems. But above all, providing incentives to companies so as not to get lured by the billions in subsidies offered by the Americans for "green investments" in the United States.

 

The Commission also admitted in its internal document that many European companies, at least in the short term, "find economic advantages in countries that are considered trading partners."

 

Like for example the United States which offers over 400 billion dollars in subsidies through the IRA Act, aiming to reduce inflation, while the energy cost is much cheaper than in Europe.

 

This Commission's document has also been sent to the 20 finance ministers of the Eurozone countries, who are meeting on Monday in Brussels, within the framework of the Eurogroup.

 

"The Commission's proposals to be discussed today at the Eurogroup address the competitiveness problems of the companies that come from the energy transition," European sources emphasized to "Naftemporiki, adding: "We need new investments in common modern European infrastructure and strategically important sectors for the green transformation of the Old Continent's economy."

 

Fair transition

 

In terms of investment, economic growth must take place in harmony with a fair transition. "That's why we need new funds to adequately support the affected areas, as well as industry and companies," the same sources stressed to "Naftemporiki" and added: "Furthermore, the proposed Step funding is not precisely targeted. We need to use our funds in sectors that will help Europe the most.

 

Moreover, the European Union must pursue an active industrial policy aimed at the global level. If we want to be economically competitive globally, we must become dominant in Europe. To do this, we need a massive expansion of renewable energy sources, the development of key green industries, including a secure and sustainable supply of critical raw materials and semiconductors. Only then will innovations emerge in Europe and industries will remain in the region," the same sources noted.