‘We are being tested,’ Eurogroup president says as oil surpasses $100

Ahead of the Eurogroup meeting in Brussels on Monday, Greek Economy and Finance Minister Kyriakos Pierrakakis told Euronews that the EU is “being tested” as the situation in the Middle East remains deeply problematic and highly uncertain, leaving energy markets in turmoil.

“Energy is going to be a core element of our discussion,” Pierrakakis told Euronews’ flagship morning show Europe Today.

“The impact on energy prices is significant already and we want to see how we are going to meet that challenge on the ground,” he added.

Oil prices eclipsed $114 per barrel for the first time since 2022 on Monday as the Iran war intensified, jumping roughly 25% since Friday and threatening global production and shipping.

At the time of writing, oil prices remain above $100.

The Eurogroup president also ensured that the EU is prepared to deal with a potential crisis, explaining that “we already have a toolkit, the 2022 toolkit. We are not there yet but businesses and households are already signalling they need support as prices deepen.”

Similarly to when Russia launched its full-scale invasion of Ukraine, Pierrakakis guaranteed that the Eurogroup is closely monitoring not just energy prices but also “the cost of fertilisers and air travel, food security and all other elements that affect inflation and the international economy.”

Meanwhile, the FT reported on Monday morning that the ​Group of Seven (G7) finance ministers will discuss a joint release of oil from emergency reserves coordinated by the International Energy Agency, in light of growing concerns about crude supply.

Single European energy market

During his interview with Euronews, the Eurogroup president also floated the idea of a “single European energy market”.

The Greek economy and finance minister explained that “resilience is not a growth strategy” and that the EU “needs to remove the barriers that exist between member states. We need a single European energy market”.

Additionally, Pierrakakis stated that only through the single market can the EU unlock its potential “even on a sovereignty basis”.

Overall, the Eurogroup president conveyed a message of unity to address this crisis, declaring that “Europe should speak with one voice on all fronts”.

Crucial EU events ahead

Pierrakakis is chairing the Eurogroup meeting this Monday, which will focus on energy prices and their impact on the eurozone, amid heightened geopolitical instability due to the Iran war.

Additionally, other macroeconomic developments will be discussed in preparation for the EU summit next week, where major talks will be held on Ukraine, the Middle East, the Single Market, the 2028–2034 Multiannual Financial Framework, defence and migration.

On Tuesday, the Economic and Financial Affairs Council (ECOFIN) will also conduct its monthly meeting, chaired by Makis Keravnos, the Cypriot finance minister.

This ECOFIN will focus on discussing the Savings and Investments Union, the economic impact of Russia’s war against Ukraine, and preparing for the G20 finance ministers and central bank governors meeting scheduled for next month in Washington.