Finance Minister Kyriakos Pierrakakis has outlined a strategic economic pivot, saying that Greece will rely on surging private capital rather than state subsidies to drive growth as the European Union’s pandemic-era recovery funding expires.
In an interview with the daily Kathimerini, Mr. Pierrakakis described the transition as a move from "extraordinary tools" to "normal, sustainable and self-financed growth."
He projected that while 2026 will see a final massive injection of EU funds — totaling some €14.1 billion ($15.6 billion) in loans and grants — the economy is already reorienting.
“The end of the Recovery Fund does not mark the end of growth,” Mr. Pierrakakis said. “But the economy is not left without fuel.”
The government forecasts total investment will hit €46 billion in 2026, with the private sector contributing 61%.
By 2029, that share is expected to rise to 78%, a shift Mr. Pierrakakis called a “structural transformation” toward productive initiative over state dependence.
The comments come as Mr. Pierrakakis assumes his new role as president of the Eurogroup, the body of eurozone finance ministers.
He warned that Europe faces intense global competition and must prioritize productivity and capital markets to survive geoeconomic shifts.
Domestically, Mr. Pierrakakis noted that public investment remains robust, set to reach €16.7 billion in 2026—triple the levels seen in 2019.
Addressing speculation about social handouts ahead of the coming election cycle, he ruled out fiscal slippage.
“Regardless of the electoral calendar, we will do what is required to protect social cohesion,” Mr. Pierrakakis said. “Always respecting fiscal balance.”