On the sidelines of the informal European Council in Versailles, Prime Minister Kyriakos Mitsotakis spoke to CNBC and journalist Silvia Amaro about the interventions that can be made in the European wholesale gas market, the crisis in Ukraine and the developments it has caused in terms of the defense architecture of Europe.
“I think there is a lot of consensus in the council that we need to do something about intervening in the wholesale gas market. I must also point out that since these posts were made public – in the last three to four days – we have seen a significant reduction in the wholesale price of natural gas. As I said, I think this reinforces the hypothesis that in this case we do not see the fundamental rules of the market working, but rather we see speculative moves. Therefore, I believe that a climate of consensus is being formed “, the prime minister underlined, referring to his proposal for a European intervention in the wholesale market of natural gas.
Regarding the Russian invasion in relation to the EU and NATO, he stressed that there was a sharp wake-up call for the EU. “We have been talking for a long time about the need for strategic autonomy. We invested in our defense capabilities. We have signed a bilateral agreement with France, which includes a mutual assistance clause. “We strongly support the EU being able to defend itself independently,” he said. “This is a complementary investment in NATO, because we must not forget that most EU member states and NATO members, but there are some EU member states that are not members of NATO. “So we have to send a clear message that we are willing to defend our continent, regardless of our relationship with NATO.”
Asked about President Putin’s intentions, Kyriakos Mitsotakis said he had “succeeded” in strengthening the Alliance and “awakened” the European Union from its geopolitical slumber. “In this sense, it certainly ‘managed’ to unite us and make us realize that defense and security are supreme obligations towards our citizens,” he noted.
Following is the full text of Prime Minister Kyriakos Mitsotakis’ interview with CNBC
Kyriakos Mitsotakis: I think we need to distinguish between long-term intervention – and we are committed to moving away from Russian gas and oil as soon as possible. Obviously this is not going to happen overnight – a distinction must be made between long-term and short-term measures. My reasoning is very simple: the wholesale market has virtually ceased to function and does not reflect the fundamental forces of supply and demand. I believe that this is something that the European Commission has acknowledged and there is a clear reference to the conclusions in the Commission Communication of 8 March.
I think there is a great deal of consensus in the council that we need to do something about intervening in the wholesale gas market. I must also point out that since these posts were made public – in the last three to four days – we have seen a significant reduction in the wholesale price of natural gas. As I said, I think this reinforces the hypothesis that in this case we do not see the fundamental rules of the market working, but rather we see speculative moves. Therefore, I believe that a climate of consensus is emerging. And we are waiting for the committee proposals in the next council, in two weeks.
Silvia Amaro: Do ​​you think that concrete measures will be agreed at the next council meeting?
Kyriakos Mitsotakis: What I expect are concrete proposals from the committee on which the Member States should agree. But the vast majority – I would say the vast majority – of the countries that have spoken out on this issue have supported this idea. There is, of course, another dimension: how can one break the link between wholesale gas prices and electricity prices. The electricity pricing model we have reflects a different period, a time when Renewable Energy was even more expensive and we were trying to encourage the inclusion of RES in our energy mix. This is not the case now. The price of electricity is determined by the limit value, which in this case results from natural gas. This makes absolutely no sense anymore.
Silvia Amaro: What will happen if the EU is willing to intervene in this wholesale crisis? Why not ban Russian oil immediately?
Kyriakos Mitsotakis: This is a completely different issue. We are currently talking about interventions in the gas market that will make the price of gas more reflect the real dynamics of supply and demand. This has nothing to do with sanctions. At the moment, I do not think there is a consensus on the complete liberation of Europe from Russian gas. These are two different things.
Silvia Amaro: What would it take for Greece to say “yes” to the ban on Russian oil?
Kyriakos Mitsotakis: I repeat that we must make a distinction between Russian oil and Russian gas. What we have said is that we are willing to consider additional sanctions. And this is always an option that is on the table. I guess this is something that will be discussed at the level of the next council as well. The committee is therefore preparing. I will say again that the oil market is different from the gas market, so I would not rule out anything at the moment.
Referring to the Russian invasion of Ukraine in relation to the EU and NATO, he stressed: “I believe that what happened was a sharp wake-up call for the EU. We have been talking for a long time about the need for strategic autonomy.” We invested in our defense capabilities. We have signed a bilateral agreement with France, which includes a mutual assistance clause. We therefore strongly support the EU being able to defend itself independently. This is an investment that is complementary to NATO, because we must not forget that most EU member states are also members of NATO, but there are some EU member states that are not members of NATO. We must therefore send a clear message that we are willing to defend our continent, regardless of our relationship with NATO. That is why I think it is so important to refer to the Conclusions in Article 42 (7) of the Treaty on European Union. And, of course, as we are going to spend more on defense, we also need to come up with an understanding of how we will handle this defense spending on deficit calculations. This is an issue that I raised again today. This discussion begins. As you know, it is a big issue at the level of our Finance Ministers (ECOFIN).
But Greece, for example, is a country that will significantly exceed the 2% of GDP set by NATO as the minimum for defense spending. Therefore, if we want to spend more on European defense, we must, firstly, ensure that this is actually done in the right way and, secondly, make sure that it does not add unnecessary burden to our budgetary position.
Silvia Amaro: So maybe NATO’s current 2% target should be strengthened. Should this number increase?
Kyriakos Mitsotakis: First of all, most Member States are not even at this level of spending. Let us first reach 2% for those Member States that are not there. And for Member States that intend to spend much more than 2%, let us ensure that additional spending above and above 2% is not included in our deficit. This is my suggestion and I think it makes perfect sense.
Silvia Amaro: In the end, former United States President Donald Trump was right.
Kyriakos Mitsotakis: In what sense?
Silvia Amaro: In terms of NATO spending.
As far as NATO spending is concerned, yes, I think it was – as I told you – that we needed to radically reorganize the Alliance and make everyone realize that we need to spend more. But we need to work smarter. And at European level we need to identify some projects of common interest, where we could invest at pan-European level and which will benefit all Member States. The field of cyber defense would be a clear example. We all face similar challenges. So why not develop our resources at European level so that we can all use them in the event of a cyber attack?
Silvia Amaro: So you’re worried that President Putin’s next target is actually NATO, possibly through cyberattacks?
Kyriakos Mitsotakis: I do not know what President Putin’s intentions are. What I do know is that it has “succeeded” in strengthening the Alliance and “awakened” the European Union from its geopolitical slumber. In this sense, it has certainly “managed” to unite us and make us realize that defense and security are supreme obligations towards our citizens.
Follow Skai.gr on Google News
and be the first to know all the news
