Greek Finance Minister Kyriakos Pierrakakis was elected Eurogroup president on Thursday, defeating Belgian Deputy Prime Minister Vincent Van Peteghem to become chair of the powerful informal gathering of eurozone finance ministers.
The decision by the euro area’s 20 finance ministers, and confirmed by three EU diplomats, represents a remarkable turnaround for Athens, which was at the epicentre of the eurozone crisis in the 2010s that almost led to the collapse of the single currency.
Many diplomats suspect Belgium’s staunch resistance to the EU’s floated “reparations loan” to Ukraine harmed Van Peteghem’s efforts to succeed Ireland’s Paschal Donohoe, who resigned as Eurogroup chair in November to take up a position at the World Bank.
Pierrakakis, who became finance minister only in March this year, and will lead the group for the next two-and-a-half years, is regarded as a more dynamic and spontaneous contributor to Eurogroup discussions than Van Peteghem.
However, Van Peteghem – who also hails from from the centre-right European People’s Party that dominates Europe’s political scene – is respected by his peers for his strong work ethic and successful chairmanship of EU finance minister meetings during Belgium’s EU presidency last year.
Pierrakakis ran on a platform that largely mirrored his rival’s: the need to improve budgetary coordination, slash public debt, strengthen the international role of the euro, and boost the EU’s flagging competitiveness.
A Greek government official said that Pierrakakis was unanimously elected after Van Peteghem withdrew his candidacy. The official added that Van Peteghem only had the support of five other EU countries, well below the 11 required to be elected.
Belgium, Greece race to clinch Eurogroup presidency
Belgium and Greece are scrambling to persuade European capitals to back their candidates in this…
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Established in 1997, the Eurogroup played a key role in determining economic policy during the eurozone crisis in the 2010s. However, its influence has faded somewhat in recent years as the bloc’s economic fortunes have improved.
The group typically meets once a month, usually in Brussels, on the eve of the Economic and Financial Affairs Council, which brings together finance ministers from all 27 EU countries.
Sarantis Michalopoulos contributed to reporting.
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