FinMin Pierrakakis urges EU to unify market, achieve economy of scale

National Economy & Finance Minister Kyriakos Pierrakakis called for a speedier creation of the single European market and warned about excessive taxation on tobacco products, among other interventions he made at the Eurogroup and ECOFIN meetings in Luxembourg.

At the ECOFIN meeting, the ministers discussed a new proposal for a directive by the Council regarding the Special Consumer Tax on tobacco and tobacco products. As the Greek FinMin said, "According to our experience in Greece, and taking into account our geographical location, we have seen in the past that the asymmetrical raise of these taxation rates leads to a record of higher smuggling." An alternate to abrupt price raises would be greater transitional periods, Pierrakakis said.

Economy of scale

In a discussion on the Savings and Investments Union (SIU), the FinMin urged implementing recommendations leading to a unified European market, as delaying this would lead to massive cost. Speaking of Greece, Pierrakakis said, "As a government, we are absolutely open to discussing cross-border mergers and buyouts. If we want to succeed, we do not just need national 'champions' - we need European champions." Referring to Greek experience, he cited three examples of transnational cases within seven months: Euronext's proposal to buy the Athens Stock Exchange; UniCredit's proposal to acquire over 30% of a share in Alpha Bank, a systemic bank; and the Greek bank Credia, which tried to buy a share in HSBC Bank in Malta. The EU needs to achieve a critical economy of scale, he added, by increasing productivity and growth.

Regarding stablecoins, Pierrakakis called for "the right point of balancing risks and opportunities" and called stablecoins "an established currency means" that must however comply with European regulations (e.g. MiCA).

In the context of meetings, the FinMin participated in an informal working lunch by Competitiveness Lab, an initiative of EU member states to assume actions deepening the Capital Markets Union. Conversation focused on promoting the Finance Europe Label for investment products, and on a proposal for creating a European platform for securitization.

Pierrakakis also met bilaterally with his counterparts of Luxembourg and Romania, on coordination and exchange of views on the agenda items of the Eurogroup and ECOFIN councils.