"I think there is a big consensus in the Council that we should do something in terms of an intervention in the wholesale gas market. I must also point out that since these positions were made public - in the last three or four days - we have seen a significant reduction in the wholesale price of gas. As I said, I believe that this reinforces the hypothesis that in this case we are not seeing the fundamental rules of the market working, but rather we are seeing speculative movements. Therefore, I believe that a climate of consensus is forming," the prime minister underlined, referring to his proposal for a European intervention in the wholesale gas market.
On the Russian invasion in relation to the EU and NATO, he stressed that there was a sudden wake-up call for the EU. "For some time we have been talking about the need for strategic autonomy. We have been investing in our defence capabilities. We signed a bilateral agreement with France, which includes a mutual assistance clause. So we strongly support the EU having the ability to defend itself independently," the Prime Minister said, adding that "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. So we need 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 that he has "managed" to strengthen the Alliance and "awakened" the European Union from its geopolitical slumber. "In that sense, he has certainly 'managed' to unite us and make us realize that defense and security are paramount obligations to our citizens," he said.
Below is the full interview with Prime Minister Kyriakos Mitsotakis on CNBC
Kyriakos Mitsotakis: I think we have to make a distinction between long-term interventions - and we are committed to moving away from Russian gas and oil as soon as possible. Obviously this is not going to happen overnight; we have to distinguish between long-term and short-term measures. My reasoning is very simple: the wholesale market has essentially stopped working and does not reflect the fundamental forces of supply and demand. I think this is something that has been recognised by the European Commission and there is a clear reference in the conclusions, in the Commission's communiqué of 8 March.
I think there is a broad consensus in the Council that we should do something in terms of an intervention in the wholesale gas market. I should also point out that since these positions were made public - in the last three or four days - we have seen a significant reduction in the wholesale gas price. As I said, I believe that this reinforces the hypothesis that in this case we are not seeing the fundamental rules of the market working, but rather we are seeing speculative movements. Therefore, I believe that a climate of consensus is emerging. And we look forward to the committee's proposals in the next council meeting in two weeks.
Silvia Amaro: Do you think the next council meeting will agree on specific measures?
Kyriakos Mitsotakis: What I expect are concrete proposals from the side of the committee on which there should be agreement, from the member states. But the majority - I would say the overwhelming majority - of the countries that have positioned themselves on this issue have supported this idea. There is, of course, the other dimension: how to break the link between wholesale gas prices and electricity prices. The electricity pricing model that we have reflects a different period, a time when renewables were still relatively more expensive and we were trying to encourage the integration of renewables into our energy mix. That is not the case now. The price of electricity is determined by the marginal price, which in this case is derived 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: That is a completely different issue. Right now we are talking about interventions in the gas market that will make the price of gas more reflective of the real dynamics of supply and demand. This is not about sanctions. At the moment I do not think there is a consensus on the complete decoupling of Europe from Russian gas. They are two different things.
Silvia Amaro: What would it take for Greece to say "yes" to a ban on Russian oil?
Kyriakos Mitsotakis: I repeat that we have to make a distinction between Russian oil and Russian gas. What we have said is that we are willing to consider additional sanctions. And that is always an option that is on the table. I assume that this is something that will be discussed at the level of the next council as well. So the committee is doing the groundwork. 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 said: I think what happened was a sharp wake-up call for the EU. We have been talking for some time about the need for strategic autonomy. We have been investing in our defence capabilities. We signed a bilateral agreement with France, which includes a mutual assistance clause. So we strongly support the EU having the ability 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. And that is why I believe that the reference in the Conclusions to Article 42(7) of the Treaty on European Union is so important. And, of course, as we are going to spend more on defence, we also need to come to a consensus on how to handle this defence spending in the deficit calculations. This is an issue that I have raised again today. This debate is beginning. 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 that NATO has set as the minimum for defence spending. So, if we want to spend more on European defence we have to, first of all, make sure that this is actually done in an appropriate way and, secondly, make sure that it does not add an unnecessary burden to our budgetary position.
Silvia Amaro: Therefore, shouldn't the 2% target that NATO currently has be strengthened. Should this number be increased?
Kyriakos Mitsotakis: First of all, most member states are not even at that level of spending. Let's first get to 2% for those member states that are not there. And for those member states that intend to spend much more than 2%, let's make sure that additional spending above and beyond the 2% level is not counted in our deficit. This is my proposal and I think it is perfectly reasonable.
Silvia Amaro: Finally, former President of the United States Donald Trump was right.
Kyriakos Mitsotakis: In what sense?
Silvia Amaro: In terms of NATO spending.
In terms of NATO spending, yes, I think it was - as I said - necessary to radically reorganize the Alliance and for everyone to realize that we need to spend more. But we have to work smarter. And at European level we need to identify a number of projects of common interest where we could invest at pan-European level and where all Member States would benefit. The field of cyber defence 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 case of a cyber attack?
Silvia Amaro: So are you worried that President Putin's next target is actually NATO, possibly through cyber attacks?
Kyriakos Mitsotakis: I don't know what President Putin's intentions are. What I do know is that he has "managed" to strengthen the Alliance and has "awakened" the European Union from its geopolitical slumber. In this sense, he has certainly "managed" to unite us and make us realise that defence and security are paramount obligations towards our citizens.
Source: APE-MPA
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