Emergency meeting at Maximos Mansion to address the consequences of the Middle East crisis

An emergency meeting is being held today at Maximos Mansion to address the consequences of the crisis in the Middle East, with the participation of the government’s close staff. A follow-up meeting is scheduled for 19:30, upon the Prime Minister’s return from Cyprus. Participants include Deputy Prime Minister Kostis Hatzidakis, Minister of Development Takis Theodorikakos, Minister of Environment and Energy Stavros Papastavrou, while Deputy Finance Minister Thanos Petralias will join from Brussels and the Eurogroup.

Immediate measures to support society are on the table, with a cap on profit margins for fuel and supermarkets currently considered the central scenario. In addition, the reintroduction of the fuel pass is being discussed, although government officials stress that “reserves” must be kept for the possibility of a prolonged conflict. In any case, officials emphasize that the government will support society and will not allow profiteering. It is acknowledged, however, that fuel prices are already rising, which could trigger a new inflationary spiral if the conflict continues.

Earlier, speaking to Mega, Deputy Prime Minister Hatzidakis said the government will act quickly but not hastily:

“There is no point in underestimating the crisis, but neither in presenting an ‘Armageddon’ scenario, which could contribute to profiteering. The government’s approach during COVID-19 and the 2022 energy crisis showed that we move earlier than other countries. The same will happen now: we will put the issue in its proper perspective and act quickly but not hastily.”

Mr. Hatzidakis stressed that the priority for the competent ministries is to prevent any profiteering in fuel prices.

“On this, we will be uncompromising. I want the message to be clear to anyone considering profiteering. The government will act swiftly and decisively.”

Asked about potential support measures, he replied:

“We will assess the overall impact as well as our capabilities. This is not Greece in 2019, and fortunately, we did not follow those who told us ‘give everything,’ but we are not Switzerland or Germany either.”

He added that no one internationally can predict the full impact at this time.

“Everything depends on the intensity and duration of the crisis. Different estimates about the duration come even from the United States. Last year there were similar concerns, but the crisis lasted only 12 days, and the pessimistic scenarios subsided. Still, governments must consider the worst-case scenario. It seems unlikely that there will be no effect on both growth and inflation; the question is the magnitude of that effect.”

The Deputy Prime Minister also highlighted that, in foreign policy, defense, and the economy, Greece is at a much higher level compared to 2019:

“We have a series of alliances with the U.S., France, and moderate Arab countries such as Egypt, Saudi Arabia, and the UAE. Our armed forces’ role has been upgraded through defense programs. Economically, the country is also much stronger. Had we had the large deficits and problems of the previous decade and 2019, we would not have been able to handle the 2022 energy crisis or this crisis, whatever its scale.”

Finally, asked about the presence of the frigate ‘Kimon’ and Greek fighter jets in Cyprus, Mr. Hatzidakis said:

“It is encouraging that not only Greece, but also France, Italy, and Spain have sent forces to Cyprus. This has not only symbolic but also substantive value. It sends a message that Europe is taking action. At first, Europe was caught off guard, but today the situation is fundamentally different, and it is very important that Greece is a key part of this picture.”