Eurogroup chief backs digital euro rollout by 2029

Greek National Economy and Finance Minister and Eurogroup president Kyriakos Pierrakakis on Wednesday called for a more ambitious European strategy centred on technology, energy integration and the digital euro, during an address at the Economist conference in Athens. According to a report by the Athens News Agency, Pierrakakis used his speech at the 30th Annual Government Roundtable, “Progress in an age of upheaval | Geopolitics-Growth-Technology,” to argue that Europe must accelerate economic integration and invest more decisively in technology if it is to remain globally competitive. He said the reports prepared by Enrico Letta and Mario Draghi have already established a common direction for Europe, but stressed that the key issue is now the speed of implementation. “My good friends Enrico Letta and Mario Draghi set out these reports, and we all agreed on the objectives,” Pierrakakis said. “The question is by when, how quickly and in what optimal way,” he added. Pierrakakis said progress is already being made in several areas of European economic integration. “We are seeing discussions moving forward on market integration and the supervisory package, and we have already discussed this at both Ecofin and Eurogroup level,” he said. He reiterated his proposal for a common European auction system for 5G and 6G radio spectrum, arguing that it could generate additional financial resources to support technology investment across the European Union. “As we look for new political and fiscal resources, perhaps we should think more ambitiously by creating a more centralised auction system and using it to leverage funding for technological development in the European Union,” Pierrakakis said. “This would mean more resources and a more competitive framework so that we can be more ambitious,” he added. A significant part of his speech focused on artificial intelligence, which he described as one of Europe’s most pressing strategic challenges. “First and foremost, we must assess the implications of artificial intelligence,” Pierrakakis said. “Here we are facing another duality. On the one hand it resembles a race for speed, while on the other it resembles an arms race,” he added. He argued that Europe’s response cannot be fragmented or improvised. “We need very substantial investments if we are to address these challenges,” Pierrakakis said. He also warned that Europe’s technological infrastructure is ageing, saying “our systems are old,” making deeper technological renewal essential. Pierrakakis also revealed that artificial intelligence would feature prominently at the following day’s Eurogroup meeting. “We are having this discussion tomorrow at the Eurogroup, and we have invited one of Europe’s champions, Mistral, to become part of that discussion,” he said. He added that artificial intelligence has now moved beyond being purely a technology issue and has become central to Europe’s broader economic and institutional strategy. Pierrakakis also pointed to the digital euro as another strategic priority for the European Union. “The digital euro will become a reality by 2029,” he said. “There is some movement, but we need much more progress on many fronts,” he added. More broadly, Pierrakakis expressed confidence that Europe can continue advancing despite mounting geopolitical and economic pressures. “This is not a yes or no question, and it is not black and white,” he said. “It is a question of how much progress we can make and how much ground we can cover,” Pierrakakis added. “There is certainly political will,” he said. Turning to energy policy, Pierrakakis argued that Europe needs faster and more decisive joint action. Referring to an International Monetary Fund report, he said coordinated European measures had substantially reduced the economic impact of the energy crisis. “If we take energy as an example, where we want to see significant progress, I would point to an IMF report showing that the impact of the crisis was 12 per cent lower than it would have been without the measures adopted in Europe,” Pierrakakis said. He added that energy investments are also being included within the fiscal escape clause. Pierrakakis also spoke about what he described as the “dividend of the obvious,” arguing that Europe must combine overdue reforms with preparations for future challenges. “We are experiencing a duality,” he said. “In Greece before 2019 there were many things that had remained undone for a long time,” Pierrakakis continued. “Those long-delayed actions create an opportunity, what I call the dividend of the obvious,” he said. However, he stressed that Europe must also prepare for tomorrow’s challenges. “We must also respond to the challenges of the future,” Pierrakakis said. He argued that while Europe should continue advancing initiatives such as the Capital Markets Union, the banking union and the energy union, it also requires a clear technological doctrine. “This can be addressed through European technology champions rather than only national champions,” he said. Pierrakakis argued that Europe should create large innovation ecosystems capable of supporting growth and technological development across the continent. He also outlined what he described as three strategic choices for Europe in global technology competition. “The first is to lead by choosing the sectors where we already have leading companies and developing them further,” he said. “The second is to build capabilities in areas where we currently have no advantage but where we have the potential to succeed,” Pierrakakis added. “But if we believe we can create European versions of everything, we are mistaken,” he said. The third option, according to Pierrakakis, is smart regulation. “Your third option is a very intelligent regulatory framework,” he said. He argued that Europe must understand where it can lead, where it can build new capabilities and where it should exercise influence through regulation. Pierrakakis also stressed the importance of financing innovation within Europe, highlighting the proposed Savings and Investments Union as a crucial initiative. “We need to put our own house in order,” he said. He explained that this means developing the Savings and Investments Union so innovative businesses can obtain financing within Europe. “This is the most important priority at the moment because someone must be able to finance these investments, for example a start-up,” Pierrakakis said. He added that Europe must ensure entrepreneurs have access to every financing mechanism they need within the European Union so ambitious projects do not leave the continent. Concluding his remarks, Pierrakakis said Europe also needs a more mature understanding of sovereignty and resilience in an increasingly uncertain world. “You need to be able to define what sovereignty means, and therefore you need a European strategy for it,” he said. “We live in a world of interdependence with constant challenges and volatility, and the question is how strong you are when you sit at the table,” Pierrakakis added. He argued that resilience should not be confused with isolation. “You can further develop your capabilities in different sectors,” Pierrakakis said. “That is how, in my view, resilience is built,” he continued. “You need very intelligent partnerships.”