site.btaGreece's Finance Minister Says Joining Eurozone Requires Discipline, Reform, Credibility

In an interview for BTA, Greece's Minister of Economy and Finance Kyriakos Pierrakakis said that joining the eurozone is not just an economic decision but also a political and strategic commitment that requires fiscal convergence, a deeply rooted culture of discipline, reform, and reliability. Pierrakakis was taking part in the annual meeting of the International Monetary Fund (IMF) and the World Bank Group in the capital of the US earlier October.

The Minister said that it will be crucial for Bulgaria to ensure that its entry into the currency union is accompanied by policies that strengthen competitiveness, productivity, and institutional trust. He emphasized that adopting the euro brings significant benefits—access to stable financing, lower debt servicing costs, and greater investor confidence, but it also brings responsibilities and commitments.

Following is the full interview.

Ten years ago, Greece was on the brink of leaving the eurozone, and many argued doing that would make easier managing debt crisis. In the perspective of time past, how do you evaluate the decisions and efforts that have been made?

My generation took the hard decision to commit to reform, and that choice has defined Greece as we see it today. The Greek people know we can’t go back to the mistakes of the past or pass the bill to the next generation.

This commitment to fiscal and political stability is now engraved in our national DNA. It’s our collective legacy, and it’s what gives Greece credibility, stability, and confidence within the eurozone.

While growing debt levels are worrying tendency on global and European level Greece is managing to gradually reduce its debt and build stabile finances while achieving growth. What were key steps in transitioning from bailout to plans for repaying loans 10 years earlier? What comes next?

When Greece exited its bailout programmes, debt stood at over 180% of GDP. Today, it’s falling fast and is expected to drop to 137.6% in 2026, according to our budget projections. We have marked one of the sharpest reductions in Europe.

We achieved this not through austerity, but through prudence, growth and responsible management. Our economy is set up to grow by 2.3% in 2025, almost double the eurozone average, and we expect another solid performance this year. We are running primary surpluses again, proof that fiscal discipline has become a permanent feature, not a temporary fix.

Greece regained investors’ confidence on the capital market and runs strong stock market. Do you fear recent uncertainties in the eurozone and growing debt levels of some of its members could endanger Greek financial positions?

The international community has recognized Greece’s progress. All major rating agencies have upgraded Greece back to investment grade, marking a full return to normality in the markets. Investor confidence is visible, the Euronext proposal to acquire the Athens Stock Exchange is a vote of confidence in our capital markets, and UniCredit’s investment in Alpha Bank sends a strong message about the health of our banking sector.

These are tangible results of a country that kept its commitments, rebuilt its credibility, and proved that reform and growth can go hand in hand.

Yes, debt levels are rising in many countries, and we all share concern for Europe’s fiscal path. But Greece today is not part of the problem it’s part of the solution.

Our debt structure is long-term, fixed-rate, and well managed. We are reducing it steadily through growth. Greece’s economy is proving to be resilient in a very challenging global macroeconomic and geopolitical environment.

How is Greece economy effected by the recent developments in trade?

Global trade tensions and slower demand certainly affect European open economies. But Greece has learned to diversify.

Tourism, shipping, energy, and technology are now solid growth pillars. Our expanding logistics and energy infrastructure are turning Greece into a regional hub, linking Europe, the Balkans, and the Eastern Mediterranean.

We have said before as a government that ideally, we would like to see a zero-to-zero tariff policy with the United States. But beyond transatlantic relations, Europe needs to look inward to address its own internal barriers, which still account for nearly 45% of manufacturing and 110% on services within the single market.

This is the real discussion we should be having in Europe right now, and it’s exactly what the Draghi and Letta reports have highlighted: the need for deeper integration and a stronger, more competitive single market.

Bulgaria’s upcoming accession to the eurozone is a step in that direction, toward a more cohesive, resilient Europe that can compete globally. So, while we remain cautious about global uncertainties, we also see opportunity, because Greece today competes with confidence, not vulnerability.

What is the Greek banking system like at the moment?

Greece’s banking system today is strong, well-capitalized, and fully aligned with European standards. The sector has undergone a deep transformation over the past decade, from recapitalization and consolidation to a focus on innovation and growth financing. Non-performing loans, which once exceeded 49%, saw a significant reduction in 2024, with the NPL [non-performing loan] ratio dropping to a record low of 3.8%, according to the Bank of Greece.

This improvement was driven by a combination of factors including the banking sector's cleansing of loan portfolios through initiatives like the Hercules asset protection scheme, strong economic performance, and robust capital generation by banks.

The sharp decline marked a significant step towards convergence with the EU average, which stands below 2%. The digital transition has been rapid as well for Greek banks. Foreign investments, such as UniCredit’s stake in Alpha Bank, or the acquisition of HSBC Malta by CrediaBank, the fifth largest banking group in the country, underline renewed confidence in the sector’s long-term prospects. In short, the Greek banking system is no longer a source of vulnerability, it’s a pillar of stability and growth.

Greece is now, after regaining investment grade and as proof of the climate of confidence in the country, attracting private capital from abroad to invest in its financial system.

As Bulgaria is preparing to enter the eurozone at the end of the year, what is important to keep in mind as a new member of this monetary union?

Joining the eurozone is not just an economic decision, it’s a political and strategic commitment. It requires not only fiscal convergence but also a deep-rooted culture of discipline, reform, and credibility.

For Bulgaria, the key will be to ensure that its entry is accompanied by policies that strengthen competitiveness, productivity, and institutional trust. Adopting the euro brings major benefits, such as access to stable financing, lower borrowing costs, and greater investor confidence, but it also means embracing the rules and responsibilities that come with it.

The experience of Greece shows that long-term stability is achieved when reforms are consistent. Once inside, maintaining sound public finances, modern governance, and investment-friendly policies will be essential.

Greece strongly supports Bulgaria’s entry. A larger, more integrated eurozone makes Europe stronger and enhances the resilience of our region as a whole. And I’m really looking forward to visiting Sofia at the beginning of 2026 to meet my counterpart and to celebrate, together with our Bulgarian friends, the accession of your country to the eurozone.