Greek Economy and Finance Minister and Eurogroup President Kyriakos Pierrakakis said violence is never acceptable, addressing unrest in France during a discussion on Europe’s political and economic challenges with author Giuliano da Empoli.
Speaking at an event organized by the Hellenic Foundation for European and Foreign Policy (ELIAMEP), Pierrakakis argued that governments must be judged by their ability to deliver results in areas such as health care, education and public finances.
The discussion, titled “Europe in the Age of Power: Who Will Shape Its Future?”, examined the European Union’s competitiveness, its ability to respond to global challenges and the decisions needed to strengthen its position against the United States and China.
Da Empoli, meanwhile, described Greece’s current political leadership and government as one of Europe’s more promising examples, pointing to the resilience of European institutions despite successive crises.
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Pierrakakis says violence is never acceptable
Addressing the unrest in France, Pierrakakis drew a distinction between public anger and violence, saying that violence could not be justified.
“First of all, regarding violence: violence is never acceptable. Period. And I think the discussion ends there,” he said.
He added that public frustration also depends on whether governments deliver tangible results. Citizens, he said, assess whether public services work, whether health care and education produce results, and whether public finances are managed effectively.
These outcomes influence how people view their taxes and whether they feel they belong to a democratic society, he said.
Pierrakakis also pointed to digital platforms designed to reduce bureaucracy as an example of how governments can demonstrate their effectiveness. He said Greece had made progress in this area but needed to do more across all areas of public policy.
Europe faces higher borrowing costs and investment needs
Pierrakakis said Europe had become more resilient over the past decade, citing stronger bank capitalization, the creation of new institutions and the establishment of the European Stability Mechanism (ESM) and a common fiscal framework.
He contrasted the current situation with Greece’s 2010 debt crisis, when, he said, there was no institutional framework in place to address the crisis.
However, Europe now faces a more demanding financial environment. Average 10-year borrowing costs have risen to around 4%, compared with approximately 1.1% previously, while the continent’s average deficit has doubled over the past decade, he said.
At the same time, governments face competing demands for investment, including defense, aging populations and higher social spending. Rising energy costs add to the pressure.
With 27 EU member states, only five currently have budget surpluses, Pierrakakis said: Denmark and four countries that had International Monetary Fund programs during the previous decade.
He described the experience of the debt crisis as “a collective trauma that was turned into policy.”
To respond to current pressures, Europe must use its resources more efficiently, coordinate more closely and ensure that every euro delivers greater value, he said.
AI could reshape jobs, social protection and financial markets
Artificial intelligence was another central topic of the discussion, with Pierrakakis warning that its rapid development could have far-reaching economic and social consequences.
He said the pace and complexity of developments involving ChatGPT, Anthropic, algorithms and large language models were difficult to fully grasp, even for experts working in the field.
While public debate often focuses on the risks of machines becoming major agents of change in everyday life, he said, the potential benefits of these technologies also deserve systematic consideration.
AI could shift some economic value from labor toward capital, Pierrakakis said, creating a need to adapt social security systems to protect people affected by the transition.
He also called for education systems to be designed with the future in mind, noting that children entering school today will graduate into a world that may look very different from the one they know.
The technology sector is also affecting financial markets. Pierrakakis said rising government bond yields cannot be explained solely by countries’ fiscal positions. Major technology companies, including Microsoft, Amazon and Google, are competing with governments to raise capital, adding upward pressure to borrowing costs.
He said these companies had previously financed expansion and investment largely from their substantial cash reserves.
Europe needs to make bolder strategic choices
Pierrakakis argued that the EU must make clearer choices about where to direct its resources rather than trying to invest in every area.
“If you invest in everything, you achieve nothing. We have to pick winners,” he said.
Europe, he added, needs to strengthen its position in dealings with the United States and China so that it is not asymmetrically interdependent and can negotiate from a position of greater strength.
He acknowledged that reaching agreement on a common European approach would take time but said shared assessments of the challenges were gradually emerging. He pointed to the reports by former European Central Bank President Mario Draghi and former Italian Prime Minister Enrico Letta as examples of efforts to establish a common understanding of what Europe needs to do.
Pierrakakis said he favored major leaps forward rather than the small, incremental steps that have traditionally characterized European policymaking. He expressed optimism that a shared diagnosis of the continent’s problems would increasingly translate into joint action.
Da Empoli praises European resilience and Greek leadership
Da Empoli also expressed optimism about Europe’s ability to withstand crises, pointing to its response to the COVID-19 pandemic and Russia’s war against Ukraine despite the lack of adequate common frameworks at the outset.
He cited Hungary as another example of the strength of European institutions. Although he strongly disagreed with Hungarian Prime Minister Viktor Orbán’s ideas, he acknowledged his political skills and his efforts over more than 15 years to steer Hungary in a different direction.
Da Empoli said Orbán’s efforts included actions against democratic institutions and the weakening of institutional checks and balances. Ultimately, he argued, the broader European framework proved stronger.
Europe continues to face major challenges, including political ones, but has demonstrated an ability to adapt, he said. He added that a significant part of the European electorate supports this direction and expects political leaders to stand up for it.
“Some of us see Greece’s current political leadership and government as one of the hopeful examples in Europe and as a hopeful political stance,” Da Empoli said.