The ‘Hot’ File of the New Minister of Finance, Kyriakos Pierrikakis

The government reshuffle has brought Kyriakos Pierrikakis to the forefront as the chosen candidate by the prime minister to take on the ‘hot’ seat after Kostis Hatzidakis’s promotion. As the new Minister of Finance, Pierrikakis faces a challenging period marked by intense global realignments. Domestically, his predecessor set high reform standards, requiring double efforts to maintain the same intensity and effectiveness. The global economic conditions are not favorable, despite Greece showcasing notable resilience in development, public debt restriction, and credit profile, as evidenced by Moody’s recent evaluation. Geopolitical uncertainties persist due to conflicts in Ukraine and Palestine, compounded by Donald Trump’s policies unsettling global waters with increased tariffs on U.S. trade partners and reduced support for the EU in Ukraine, leading to heightened defense spending needs. Pierrikakis must manage direct impacts on Greek exports to the U.S., valued at €2.117 billion in 2023, primarily in food products, and indirect effects on European trade. Additionally, he will navigate discussions on defense expenditures within the EU, balancing international forums while defending Greece’s stance amidst shifting member-state blocs. Domestically, Pierrikakis continues the fight against tax evasion, ensuring the smooth operation of digital tools, managing public property utilization, and overseeing various reforms including green taxation, regional project units, and carbon border adjustments. With the Recovery Fund nearing its end, Greece must absorb allocated funds efficiently to avoid losses impacting GDP.