Greece’s redemption: Pierrakakis elected Eurogroup President, a decade after crisis humiliation

Greece’s finance minister, Kyriakos Pierrakakis, has been elected president of the Eurogroup – an outcome widely viewed as a milestone in the country’s long road from near-ejection during the eurozone crisis to renewed credibility within the core of EU economic governance.

Pierrakakis secured the post after Belgium’s Vincent Van Peteghem withdrew his candidacy, allowing eurozone ministers to adopt the decision unanimously. The vote took place as finance ministers met in Brussels to choose Paschal Donohoe’s successor, with the EU simultaneously wrestling with the divisive question of whether to use frozen Russian central bank assets to fund loans for Ukraine.

For Greece, the appointment carries clear symbolic weight. Between 2010 and 2015 the country required three bailouts to avoid economic collapse following years of excessive borrowing and fiscal mismanagement. Today, Athens reports steady growth above 2%, the highest investment rates in the eurozone, persistent budget surpluses and rapidly falling – though still elevated – public debt.

European Economic Commissioner Valdis Dombrovskis described the vote as “an important symbolic moment”, noting that Greece had once faced open questions about its continued membership in the single currency. “Now we see a remarkable turnaround,” he said, pointing to Athens’ fiscal surplus and improved performance.

A strengthened role for Athens inside EU economic governance

For Athens, the Eurogroup presidency is more than recognition of recovery. It grants Greece influence over an institution that shapes fiscal rules, coordinates policy responses and prepares eurozone summits. Although the post is informal, it remains highly influential in setting agendas and mediating between member states, the European Commission and the European Central Bank.

European Council President Antonio Costa praised the choice, calling it “a meaningful recognition” of Greece’s progress. Pierrakakis, 42, will represent the eurozone in G7 finance ministers’ meetings and guide monthly Eurogroup discussions during his two-and-a-half-year mandate, beginning on 12 December.

Before becoming finance minister earlier this year, Pierrakakis served as digital governance minister from 2019 to 2023, leading Greece’s state-digitisation drive as the country emerged from its decade-long debt crisis.

His priorities: advancing a Savings and Investment Union, fostering a more competitive and digital economic environment, and addressing demographic decline – a challenge he sees as central to Europe’s long-term economic resilience. He also highlighted Greece’s own fiscal adjustment experience as evidence of stability after years of crisis.

Belgium’s concerns and the political backdrop

Pierrakakis’ main rival, Belgium’s Van Peteghem, entered the race at a politically sensitive moment. Belgium remains firmly opposed to the European Commission’s plan to use around €200 billion in frozen Russian central bank assets for a loan to Ukraine. Most of these assets are held by Brussels-based clearing house Euroclear, and the Belgian government has warned that the move could trigger financial and legal retaliation from Moscow. Belgian officials argue it could also undermine broader trust in the eurozone economy.

These tensions formed the political backdrop of the Eurogroup succession. The ministers’ vote required only a simple majority. After Donohoe’s departure was announced in November – he was re-elected in July for another term but later accepted a senior World Bank role – both Van Peteghem and Pierrakakis entered the contest.

The Eurogroup, established in 1997, coordinates economic and budgetary policies for the 20 eurozone states, with Bulgaria expected to join as the 21st on 1 January. It prepares eurozone summits and monitors implementation of decisions taken at heads-of-state level. The body will soon launch the nomination process for a new vice-president of the European Central Bank, as the mandate of Luis de Guindos ends in May.

Pierrakakis’ election comes as the eurozone grapples with multiple strategic debates: the reform of EU fiscal rules, the deepening of capital markets and the long-term investment policies needed for competitiveness. For Athens, holding the presidency means a rare opportunity to influence the evolution of these core files from within.

European circles view Pierrakakis’ election as confirmation of Greece’s restored credibility – not merely a country that has complied with EU requirements, but one now shaping the rules of economic governance. For the government in Athens, it is a moment of political visibility after years of supervision and constraints.

Pierrakakis will assume office on 12 December.

Sources: IBNA, Reuters, BGNES