Greek and EU Leaders Warn of Middle East Energy Crisis
Prime Minister Kyriakos Mitsotakis and EU officials warn that a Middle East crisis could trigger stagflation and severe energy disruptions across Europe.
During the Delphi Economic Forum XI in April 2026, Kyriakos Mitsotakis and other European officials warned that the crisis in the Middle East could cause widespread economic instability. Mitsotakis characterized the situation as extremely critical, stating that a prolonged blockade in the Strait of Hormuz would likely trigger sharp increases in energy prices, fertilizer shortages, and rising inflation. He urged Europe to develop a plan B and prioritize a lasting ceasefire to restore the pre-war status quo.
Economic officials provided further technical warnings regarding the impact on the European Union. EU Commissioner Valdis Dombrovskis estimated a potential stagflationary shock to the economy between 0.2 and over 1 point, depending on the intensity of the conflict. Dombrovskis argued against using a fiscal escape clause, maintaining that any financial measures must remain temporary and targeted due to existing debt constraints.
Greek Finance Minister Kyriakos Pierrakakis described the current environment as the largest energy crisis in history, noting that 30 of approximately 80 regional assets have been affected. While Pierrakakis noted that Greece is more resilient than it was in 2022 and has no immediate plans for new support packages, he confirmed the government retains the financial firepower to implement measures if the situation worsens.
