Bloomberg Audio Studios, podcasts, radio news. So Greece has been involved in another round of talks convened by the French President in Manuel Makhuo, on how to best respond to the US Russia dialogue on Ukraine. The country is amongst the highest defense spenders as a percentage of GDP and NATO, a topic with President Trump often uses to criticize what he says is a lack of investment by the military alliance. Well, the Greek Prime Minister Kitiyakos Mitsotakis joins US now for
an exclusive conversation from Athens. Prime Minister, thank you so much for joining US. President Trump has called President Zelenski a dictator.
What's your reaction when you hear that?
Alfresin Now, thanks for having me. You know, President Trump is a very smart man, and you know, he has his own unique way of expressing himself. But I think that, you know, in principle, I think we need to agree
on certain fundamentals. And I'm sure that these statements that I will make are also sort of also reflective view of our American friends that we need peace through strength, that obviously there can be no solution for Ukraine without the Ukrainians being involved, and of course there can be no security arrangement for Europe without the Europeans also being involved. So I think we're at a relatively delicate state when
it comes to these discussions. And of course Europe also needs to come up and emerge with a unified voice, and we need also to do what is expected from US in order to commit to our own security, not just Ukraine security.
But Prime Minister, what can Europe do concretely? So can they move without the US or is it talking with the US?
What are the steps that you see going forward?
Well, I've always been in US strong advocate of Europe doing more to take control of its own security priorities.
As you know, and as you.
Pointed out, Greece is a country that is spending more than three percent of our GDP on defense, and we have been consistently exceeding the two percent threshold and at times when richer European countries were not contributing to our common sort of defense budget.
In the way that they should.
So I mean this is really the time when we need to move from words to actions. We need to spend more on defense, We need more physical flexibility when it comes to the European rules to allow us to spend more on defense without breaching European expenditure rules. This is something which has been acknowledged by the President of
the Commission. I've been lobbying very hard to get to that point, and of course I think we also need some sort of joint European borrowing facility that will allow us to implement projects of European common interests, such as a European missile shield, which.
Would benefit the entire continent.
Again, we've been talking a lot about these priorities of the past years, and I think now we're faced with what I would call sort of a rude awakening in a sense, and we need to move from words two to action. So one President Trump many years ago pointed out that we didn't spend enough on defense. It was in principle right, and we need to make sure that we make up for the lost ground.
But premierster in terms of timeline, when will Europe accept the need for joint bonds?
Again?
Are those conversations accelerating at pace? Will it become a reality soon?
What I expect will become a reality as soon as the next European Council is the first sort of intervention which I talked about. We need more physical flexibility, so when we spend more on defense, you know, the incremental spending should not count towards our European deficit calculations. This is a decision that we could make theoretically as early as the European Consul in March, and frankly, we cannot delay this decision any longer should we choose to spend more.
And again I do need to point out that greed has been spending significantly more than our European allies. We need the necessary physical flexibility in order to be able to do that. So I could expect a decision regarding the fiscal flexibility, what we call the exemption from the general sort of the activation of the general escape claus
to come as early as March. I think talking to many of my European colleagues who could be classified as frugals, they also recognize that in extraordinary times we need to take extraordinary measures. So the discussion about some sort of joint European borrowing facility is certainly on the table. And I also expected to pick up esteem very quickly.
I mean, I think Bloomberg Economics estimates that around three point one trillion dollars of the next ten years. Can Europe find that money? Come up with that money?
I don't think that the money can come up exclusively from national budgets. So, as I told you, we need a combination of national financing and European financing. We know that we have significant capability shortcomings in air defense, in military transport. These are gaps that we need to fill. But again I do want to be very very clear,
this change cannot take place from one moment to the next. Hence, in spite of whatever tension may have arisen, I remain a strong proponent of the value of the Transatlantic partnership and gas. Sometimes you know, American friends may express themselves in a different way, but when they sort of point the figure at us and tell us you need to do more for your own security, again, in principle they are right. I'd be making the same argument for quite some time now.
Prime Minister, who will speak for the Europeans if you're Backtally gets a seat at the table with Donald Trump and Vladimir Putin.
That is a decision we still have to make.
One of the topics that we could discuss is to appoint a very high level sort of EU representative who could speak on behalf of the European Union. Because right now we as you know, we have the person of the depend Council or the person of the Commission. You have the high representative, but we may choose to actually appoint you know, a special sort of representative who needs to be someone with well, with a lot of authority and gravitage,
who could represent the European Union. I think it is necessary to speak with one voice.
I mean, it does seem that Vladimir Putin managed to achieve what they wanted, which is speaking to the US directly superpower to superpower. What can the EU now do to get a seat at the table for Brussels but also Kiev.
Well, first of all, when we talk about, you know, security arrangements in Europe, Obviouslyurope will have to be involved. One of the discussions that are taking place is related to future security guarantees to Ukraine. I think, you know, many expect that Europe will have to role to play when it comes to defining these security guarantees.
That's why I spoke.
About the need to discuss the new European security architecture, obviously with the involvement of Europe. But again, the more committed Francine we are to address in chronic shortcomings of the European Union, the more credibility we will have in playing an active role in these negotiations. That's why I do expect and I'm calling for very concrete results. We should be reflected in the conclusions of the next European Council.
We don't have a minute to waste.
Pre Minister Donald Trump also announced new terrorifts on auto imports as soon as April.
Is the EU considering or should it.
Consider to actually for its own terrorf rate to avoid some of the American duties.
As you know, this is an exclusive competence tariffs and traders, and exclusive competence of the European Commission. We don't want to get into a trade war with the United States. But should it be necessary, of course europe is going to respond. I think we still have time to avoid that. I think it would be bad for both our economies,
both the European economy and the American economy. And I've always been advocating that if there are unilateral gestures that you can make to level the playing field, it should proceed with doing so sooner.
Rather than later.
But again, we should have no doubt that in case Europe is put in a position where tarists are imposed unilaterally on European.
Goods, Europe will be forced to respond.
But I'm cautiously optimistic that we will be able to avoid this error.
Does it have to dear to WTR rules or do you think Europe should try and get a INNI actual deal with the US directly.
To be honest, I think this is going to be a discussion that will take place between Europe and the US directly, and I think we all see the value of making sure that we have.
You know, a level playing field.
And again, if there are unnatural gestures that Europe can make to level the playing field in goods where maybe we have sort of higher tariffs than our American friends right now, we should have the course to do so.
Prime Minister, I also want to ask you something domestically about the center in the earthquakes that of course are being decreasing in number, but the outlook is quite uncertain. What kind of impact would that have on the tourism season?
Well, I noticed you the Prime Minister of Iceland before me on the show. So it seems to be quite concerned with countries are geologically active. Yes, we've had a lot of sort of medium sized earthquake activity taking place on Santorini. We've seen a reduction of the activity over the past days, which is encouraging. Of course, we always listen to the scientists and we have to prepent for for all eventualities. But you know, Greece is a safe from a country, and this is a message I want
to communicate. And no one can predict the future, but you know, more cautiously optimistic about what is happening in Santorini, and you know, things go hopefully according to plan, will return to sort of a normal state relativis.
Prime mister, thanks so much for giving us a bit of your busy schedule today. That was, of course a great Prime Minister. Kiriakos meets attacks