Prime Minister Kyriakos Mitsotakis gave an interview to the American Bloomberg network from Sharm El Sheikh, Egypt, where he is participating in the COP27 International Climate Conference.
Speaking about the country's energy plans, Mr. Mitsotakis said that "Greece is becoming an energy hub for the transport of liquefied natural gas, not only with the aim of meeting the country's energy needs, but also the supply of natural gas to the Balkans, the central Europe and - why not - in Ukraine. From this point of view, this role becomes very important for other countries as well."
"We want to become a clean exporter of green electricity to Central Europe. This means we need more connections with central Europe. But we can also be the transit country that will connect Europe with North Africa. We are talking to the Egyptians. We are moving forward with a very ambitious plan, for a 3 GW cable that will connect Africa to Greece. And, of course, in order to have a 3 GW cable, you need 10 GW of installed capacity from renewable sources to produce electricity," noted the Prime Minister.
Regarding the Greek economy, Mr Mitsotakis explained that "the reason why we are doing well is that we have managed to combine high growth with a measured fiscal policy".
"I have rejected requests, for example, for a horizontal reduction in VAT, which would have caused a big blow to our budget without necessarily leading to low prices. We therefore know that we must take targeted support measures and focus precisely on supporting the most vulnerable households," he noted.
Observations: "Lies that have been written"
Kyriakos Mitsotakis also answered questions about the surveillance: "I have made it clear that the recent publication that saw the light of day in Greece is absolutely false. I was very clear, acknowledging that in Europe we have a problem with illegal malware - it's not just a Greek problem, we've seen it in many European countries - and we need a European regulation to deal with it.
I hope that Greece will be the first country in Europe, within the next month, we will ban all illegal malware that can be sold in Greece. So we have to turn this real problem into an opportunity."
To a Bloomberg journalist's question about the influence of a possible change in the United States, Kyriakos Mitsotakis answered:
"The relations between the United States and Greece are in a very good place. Greece is a strategic partner of the United States in a very important and difficult part of the world, and I do not believe that this will change."
His entire interview:
Francine Lacqua: It gives me great pleasure to welcome Kyriakos Mitsotakis, Prime Minister of Greece. Mr. Prime Minister, thank you for being with us. I think this is the first interview of the day, from here, from Sharm El Sheikh. Are you optimistic about how things will turn out? We know that this COP27 session will not give us any major headlines. We don't expect huge commitments. What we are waiting for is money. Will we take money from rich countries for poorer countries to deal with climate change?
Kyriakos Mitsotakis: I am cautiously optimistic about progress on this vital front. You rightly point out that the real question that remains is the financing of the transition and how we make the transition to green energy and a more sustainable future more affordable for the poorest countries.
Right now there is a lot of momentum, there is a lot of involvement of the private sector, big companies, non-governmental organizations, and I think we all understand, with each passing day, that a new climate-related crisis is emerging somewhere. We know that climate change is developing at a faster pace than we expected and this is becoming commonplace and something that requires an immediate response.
Francine Lacqua: Mr. Prime Minister, how difficult is it to give money for operational issues or related issues when we are faced with a huge energy security crisis that is going on in Europe, of course, coupled with the cost of living that is going up. And while many people have to make difficult decisions during the winter.
Kyriakos Mitsotakis: Difficult decisions will have to be made. But at the same time, we know that we should insist on the issue of the green transition. Let me give you the example of Greece. We have an installed capacity of 10 GW from renewable energy sources. Ten days ago we had a beautiful day, with sunshine and winds. For five hours the country's entire electricity consumption was based on RES. And we understand that the emphasis on renewable sources is more economical but also geopolitically safer, while, in addition, it also contributes to the reduction of pollutant emissions.
So we are talking about positive projects in terms of Net Present Value (NPV) and for this reason I expect a significant acceleration worldwide in terms of RES.
Francine Lacqua: Are energy security concerns changing your plans? For example in terms of lignite power plants?
Kyriakos Mitsotakis: In the short term, yes. We intend to extend coal production, possibly for two to three years. But moving away from carbon is a decision we've made and it won't change. What will change is the diversification of natural gas supplies. We know we will need natural gas for the foreseeable future.
Greece is becoming an energy hub for the transport of liquefied natural gas, not only with the aim of meeting the country's energy needs, but also to supply natural gas to the Balkans, central Europe and - why not - Ukraine. From this point of view, this role becomes very important for other countries as well.
Francine Lacqua: You are looking to build a cable, from Egypt to Greece, that will import green energy. And at the same time a connection, for example with Germany.
Kyriakos Mitsotakis: We want to become a clean exporter of green electricity to Central Europe. This means we need more connections with central Europe. But we can also be the transit country that will connect Europe with North Africa. We are talking to the Egyptians. We are moving forward with a very ambitious plan, for a 3 GW cable that will connect Africa to Greece. And, of course, to have a 3 GW cable requires 10 GW of installed renewable power to generate electricity.
Francine Lacqua: When you look at the crisis we're facing and the return to coal-burning power plants, do you generally think that, because of the war in Ukraine, the transition will take longer? Will we then enter the green transition more aggressively or will it simply take more time? So are we talking about transposition in the future?
Kyriakos Mitsotakis: Actually, it should be done faster, especially when...
Francine Lacqua: I have to. But will it happen?
Kyriakos Mitsotakis: It must be done faster. And when we look at how we use our funds, European funds, but also private funds, we know - for example - that we need infrastructure reinforcement in terms of our networks. This for us is absolutely of the utmost importance, because at some point we will not be able to install more renewable energy units if we do not have more investment in the networks. But security of supply becomes a huge issue. Renewable sources are the safest, cleanest and cheapest form of energy today, especially for countries like Greece.
Francine Lacqua: Mr. Prime Minister, tell me a little bit about the cost of living crisis. In terms of development, Greece is doing very well compared to other countries. The cost of living crisis continues and affects many of your citizens.
Kyriakos Mitsotakis: That's how it is and that's why we support the citizens with various means. The performance of the economy exceeds forecasts, growth will approach 6% this year. This gives us fiscal space to support our citizens. And, of course, we are probably the only country that has been able to recycle profits from energy producers to support our citizens. We have actually taxed - it may sound a bit socialist or communist - but we have imposed a 90% tax on the surplus profits of power producers in the first six months of 2022. So we are recovering a significant amount of money from power producers to support businesses and households .
Francine Lacqua: Greece went through a huge austerity program, with the participation of the International Monetary Fund. I don't know if you have any advice, or if you've had a chance to talk to the UK Prime Minister, about what they need to do for the very difficult couple of months we've seen in the UK.
Kyriakos Mitsotakis: I think what we saw in the UK is very clear: you can't fool the markets. If you offer a program that is not well funded, the markets will ask questions, regardless of whether it is a small or large country. We have learned our lessons in Greece. So we know that everything we do must be financially sustainable.
I repeat, the reason why we are doing well is that we have managed to combine high growth with a measured fiscal policy. I have rejected requests, for example, for a horizontal reduction in VAT, which would have caused a big blow to our budget without necessarily leading to low prices. We therefore know that we need to take targeted support measures and focus precisely on supporting the most vulnerable households.
Francine Lacqua: Mr. Prime Minister, I know there was also a lot of talk over the weekend about the surveillance scandal. Can you confirm what you know? Is it true that journalists and others were being watched?
Kyriakos Mitsotakis: Absolutely not. I have made it clear that the recent publication that saw the light of day in Greece is completely false. I was very clear, acknowledging that in Europe we have a problem with illegal malware - it's not just a Greek problem, we've seen it in many European countries - and we need a European regulation to deal with it. I hope that Greece will be the first country in Europe, within the next month, we will ban all illegal malware that can be sold in Greece. So we need to turn this real problem into an opportunity.
Francine Lacqua: Mr. Prime Minister, I know you're not going to talk to me about American politics but, as you know, we have the midterm elections, which could really change the nature of some of the decisions on taxation, the debt ceiling, consequently of economic policies emanating from the US. How does this affect Europe? What kind of partner does Europe need when it comes to the United States of America?
Kyriakos Mitsotakis: Let me talk about the Greek-American relationship, which is at an all-time high and I expect it to remain that way, regardless of what happens in the US Congress. Greece is a strategic partner for the US, in a difficult part of the world. And no matter what happens in Congress, I expect that won't change.
Francine Lacqua: Mr. Prime Minister, thank you very much, as always, for your time. I hope to see you in London very soon.
Kyriakos Mitsotakis: Thank you very much.