Published: March 10, 2026
Source: The Sofia Globe / Eurogroup Press Release
The European economy has the capacity and the resilience to absorb temporary shocks, Eurogroup president Kyriakos Pierrakakis said after a March 9 discussion by the group of macroeconomic developments, including against the background of the war in the Middle East.
"But at the same time, we must be prepared for a more prolonged period of instability, with potential disruptions to shipping, increases in energy prices and implications for inflation," Pierrakakis said.
The situation in the Middle East is deeply concerning, he said.
"Besides the economic turmoil, we are witnessing a tragic situation with broad geopolitical repercussions," Pierrakakis said.
In this time of crisis, the EU stands in solidarity with its friends in the region and the people affected, he said.
Pierrakakis said that 2025 was a positive year for the European economy, with higher-than-expected growth, supported by stabilising inflation, stronger domestic demand, robust labour markets and favourable financing conditions.
"Today, however, we find ourselves in a quite different environment. We are closely monitoring market reactions to developments in the Middle East - and this is what dominates international headlines."
Instability in the Middle East and the ongoing war in Ukraine remind us how vulnerable energy markets are and how exposed our economies might remain to external shocks, Pierrakakis said.
"We are seeing upward pressure on energy prices, and we discussed the types of measures that member states are considering, along with the need to remain coordinated in action while monitoring the situation on the ground," he said.
This is pertinent for the protection of our citizens and for the protection of our businesses, Pierrakakis said.
"We have faced disruptions in imported energy supply before, and this will certainly not be the last time," he said.
"However, energy grids and our overall energy architecture are built over longer time horizons and require a clear strategic vision, as well as a stable and credible policy and regulatory framework."
For this reason, alongside the discussion on immediate developments in energy markets, the Eurogroup also examined the structural aspects of energy in Europe, he said.
"We focused on accelerating the energy transition, further developing and interconnecting European energy grids, ensuring well-functioning and integrated energy markets, and supporting investment in energy infrastructure, energy efficiency and energy security," Pierrakakis said.
"At the same time, the current situation highlights something which in my view is much broader: Europe cannot remain in a constant mode of crisis management."
Europe's strategy must go beyond the crises of the moment, he said.
"We have this duality in the nature of our approach, because on the one hand, we're trying to resolve the outstanding issues of the past; and on the other hand, we're trying to reply to the emerging crisis and the emerging challenges of tomorrow."
"Recent developments reinforce our conviction that we must move faster to strengthen our economy along with Europe's strategic autonomy," Pierrakakis said.
Important steps have already been taken in recent years, but what is now required are leaps forward, along with more decisive action, he said.
"Crises do not change our objective. They accelerate the need to achieve it," Pierrakakis said.