Greece urges EU to loosen fiscal rules as energy crisis deepens

High energy prices and military escalation at energy facilities in the Middle East prompted Greek Prime Minister Kyriakos Mitsotakis to ask Brussels for greater fiscal flexibility. Greece has the largest debt among EU countries and is heading to polls in 2027.

Greek Prime Minister Kyriakos Mitsotakis is calling on the European Commission to "take action" in giving national governments more fiscal room to shield households and businesses from a renewed energy-price shock, according to a letter seen by Euronews.

"We need more breathing room to protect our citizens and businesses (...) We must find the additional necessary flexibility within the Economic Governance Framework to allow Member States to take additional support measures (...) while safeguarding fiscal sustainability," reads the letter dated 30 September.

Addressing Commission President Ursula von der Leyen and Eurogroup President Kyriakos Pierrakakis, Mitsotakis said that Europe’s latest energy crisis is lasting longer than expected, with increased attacks on energy facilities in the Middle East threatening to turn it into both an economic and political challenge for Athens.

Greece has the largest national debt among the 27 EU member states. While the country’s economy is growing, a wave of generous government subsidies and sweeping tax cuts is making it much harder to chip away at its massive national debt.

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