Podcast Summary: Greek PM Talks EU Debt, Cross-Border Banking

Podcast: Bloomberg Talks
Host: John Authers (Bloomberg)
Guest: Kiriakos Mitsotakis, Prime Minister of Greece
Date: September 26, 2025

Episode Overview

This episode features a wide-ranging interview with Greek Prime Minister Kiriakos Mitsotakis. The conversation delves into major European economic and political issues, including proposals for a joint EU defense fund, shifts in European fiscal health, the prospects for deeper European banking integration, and Greece’s own economic turnaround. Mitsotakis combines optimism about Greece’s recent growth with frank assessments of Europe’s collective challenges and calls for bolder EU-wide action.

Key Discussion Points & Insights

1. Momentum for a Common EU Defense Fund

• Background: Amid rising tensions over Ukraine and new debate in Germany about utilizing frozen Russian assets, Mitsotakis reiterates support for joint European defense spending.
• Mitsotakis:
  • Advocates for a “joint European borrowing facility” to finance collective defense projects.
  • Notes growing support even among countries previously resistant, including signals from Germany.
  • Prioritizes missile and drone defense as key collective projects.
  • Quote:

    "I do sense that there is much more momentum now amongst my colleagues... I’m pretty sure that Germany will eventually also agree to this necessity." (01:18)

2. Greece’s Economic Turnaround and Fiscal Policy

• Fiscal Discipline: Greece forecasts surpluses after years of crisis and has created 500,000 jobs during Mitsotakis’ term.
• Focus: Ensuring the benefits of growth reach the average Greek citizen via tax cuts for the middle class, effective January 1st.
• Quote:

  "This is a foundation of our economic policy. We’ve suffered a lot from not being fiscally disciplined. This is not going to happen again." (02:23)

• Quote:

  "I want the average Greek to really feel a tangible benefit from this growth story." (02:48)

3. Concerns about Financial Contagion in Europe

• Contrast in Europe: Greece and Spain are now among the faster-growing EU economies, while France struggles with slow growth and rising debt.
• Systemic Risks: Mitsotakis acknowledges that Europe’s core economies must remain stable; tourism and exports expose Greece to knock-on effects.
• Quote:

  "Eventually no one can beat the markets. We know this very well." (03:50)

4. Shifting Power Dynamics & European Solidarity

• No Schadenfreude: While things have changed since the Eurocrisis, Mitsotakis stresses unity and collective European interest over national point-scoring.
• Draghi Report: Expresses disappointment at lack of progress in European integration.
• Quote:

  "In Europe we usually wear two hats...for some countries the European hat seems to be shrinking." (05:13)

5. Banking Union and Cross-Border M&A

• Recent Event: Italian bank UniCredit increased its stake in Greece’s Alpha Bank—Mitsotakis is positive about the move, contrasting with more protectionist German attitudes.
• Banking Union: Calls for openness to cross-border bank deals as a sign of trust in Greece and support for greater lending to SMEs and mortgages.
• Quote:

  "If we really mean what we say about creating scale in banking union, we should be open to these types of transactions." (06:13)

6. Who Blocks EU Integration: Brussels or Capitals?

• National Interests: Mitsotakis says the real obstacles come from national capitals, not EU bureaucracy.
• Historical Parallel: Suggests Ukraine could be a “geopolitical Covid moment,” requiring the same decisive collective action Europe showed during the pandemic.
• Quote:

  "If you want to understand what's happening in Brussels, look at the national capitals." (07:12)

7. Sustaining Growth & Convergence with Europe

• Qualitative Growth: Focus on innovation, investment, exports, and high-value jobs; aims to drive wage convergence with the rest of Europe.
• Cost-of-Living: Acknowledges current pressures but stresses that support must remain fiscally sustainable.
• Quote:

  "My main goal is to ensure that wages increase, that we have wage convergence with Europe." (08:29)

• Forward-Looking: Optimistic about continued progress in 2026 and beyond.

8. 2027 Elections and Political Outlook

• Upcoming Elections: Mitsotakis reaffirms his aim to win a third term with an absolute majority but signals willingness to respect voter decisions—even if coalition is necessary.
• Quote:

  "If we deliver on our commitments...we have a reasonable chance to win an absolute majority. But if the Greek people decide otherwise, we have to respect their decision." (09:38)

Notable Quotes & Memorable Moments

• On Defense Union:

  "Missile defense, drone defense, right up there in terms of our collective European priorities." – Mitsotakis (01:32)

• On Fiscal Discipline:

  "Once you do it, then you can enter into this virtuous cycle where you can actually grow the economy." – Mitsotakis (03:55)

• On European Leadership:

  "Some of the decisions that we need to take require more funding. It’s pretty clear. And we need to put our European interest...realize that some difficult decisions need to be taken at the European level." – Mitsotakis (05:29)

• On Banking Union Reality:

  "The Council has become more complicated in terms of taking decisions...In the past we took a momentous decision when we had to address Covid. Is Ukraine a geopolitical Covid moment? I would argue, to a certain extent, yes." – Mitsotakis (07:17)

• Optimism for Greece’s Future:

  "I tell my fellow Greek citizens that I think the best days are ahead of us and that this is a policy that will deliver long, long term benefits." – Mitsotakis (09:01)

Timestamps for Important Segments

• [00:29] – Introduction; context on Ukraine and EU defense
• [01:11] – Mitsotakis on joint EU defense fund momentum
• [02:19] – Fiscal discipline and Greece’s economic recovery
• [03:48] – Regional European contrasts and contagion risk
• [05:00] – Reflections on Europe’s shifting fortunes and integration
• [05:48] – The state of banking union and cross-border deals
• [07:09] – Who is blocking EU integration: Brussels or national capitals?
• [07:59] – Real GDP vs. pre-crisis, goals for wage and income growth
• [09:14] – Elections 2027 and political outlook

Tone & Takeaways

Mitsotakis delivers cautiously optimistic, pragmatic insight—assertive on the need for EU-wide action, but focused on practical benefits for ordinary citizens. He champions discipline, reform, and European unity while remaining realistic about the obstacles that remain, both for Greece and the continent.