Overview of The Rachman Review with Kyriakos Mitsotakis
In this Financial Times interview from Athens, Gideon Rachman speaks with Greek Prime Minister Kyriakos Mitsotakis about the geopolitical and economic pressures facing Greece and Europe. The conversation centers on the Middle East conflict, Iran and the Strait of Hormuz, energy security, NATO and European defense, the war in Ukraine, Greece’s economic recovery after its debt crisis, and what lessons other European countries can learn from Greece’s reforms.
Key Topics Discussed
Energy prices, inflation, and economic risk
Mitsotakis says the immediate impact of conflict in the Middle East is not yet physical shortages, but persistently higher energy prices and inflation, which are already squeezing households and threatening growth across Europe.
- Greece is using available fiscal space for targeted, temporary relief measures.
- He warns that the longer high prices persist, the more severe the affordability problem becomes.
- He does not expect major oil shortages, but sees price pressure as the main risk.
The Strait of Hormuz and freedom of navigation
A major focus of the interview is Iran’s reported push to impose tolls on ships passing through the Strait of Hormuz.
Mitsotakis is emphatic that:
- Greece opposes any toll or surcharge on shipping
- Paying would create a dangerous precedent for global freedom of navigation
- The issue is especially sensitive for Greece because it is a major shipping power and depends on open sea lanes
He argues that shipping costs and navigation rights must not be turned into geopolitical leverage.
Greece’s role in Middle East maritime security
Mitsotakis describes Greece’s participation in maritime security operations:
- Greece has led a European naval mission in the Red Sea to protect commercial shipping from Houthi attacks
- He says the mission has been effective and that Greek forces have already had operational success
- He suggests the mandate could be expanded, but only after a negotiated settlement, not while the region remains in active conflict
Israel, Gaza, Lebanon, and regional diplomacy
The prime minister explains that Greece has a strategic partnership with Israel, but that partnership does not prevent Athens from criticizing Israeli actions.
He says Greece:
- Publicly criticized developments in Gaza and Lebanon
- Welcomed ceasefires and direct talks
- Maintains strong relations with Israel, the UAE, Saudi Arabia, Qatar, and Egypt
His message: Greece aims to remain a credible regional partner to all sides, not just one camp.
NATO spending and European strategic autonomy
Mitsotakis defends Greece’s high defense spending, arguing that Greece’s neighborhood requires it.
He says:
- Greece has consistently met NATO obligations
- Defense investment is necessary because of the security environment, especially tensions involving Turkey
- Europe should build more strategic autonomy, not just rely on the United States
He also points to Greece’s support for Cyprus after drone attacks, saying Europe needs stronger practical coordination on defense.
Ukraine and the war with Russia
On Ukraine, Mitsotakis says Europe must sustain support and has finally unlocked major funding commitments.
Key points:
- Russia is not winning the war, in his view
- A just peace will require military parity
- Western support must continue so Ukraine can defend itself
- He believes Russia may only come to the table if the costs become too high
European competitiveness and reform
Mitsotakis links security to broader European economic reform.
He argues Europe needs urgency on:
- Energy market integration
- Savings and investment
- Single market reform
- A proposed “28th regime” to create a single legal framework for companies operating across the EU
He sees these as essential for restoring European competitiveness.
Greece’s recovery from its debt crisis
A significant part of the interview revisits Greece’s turnaround since the financial crisis.
Mitsotakis says Greece has:
- Reduced debt as a share of GDP at a very fast pace
- Moved toward healthy primary surpluses
- Cut taxes, attracted investment, and lowered unemployment
But he also stresses unfinished business:
- Inflation remains a problem
- Public administration still needs reform
- Greece must prepare for demographic change, AI, and climate risk
Lessons from Greece for other debt-heavy countries
Asked what others can learn from Greece, Mitsotakis says the main lesson is simple:
- Do not wait for an existential crisis to reform
- Address tax evasion early
- Do not let populism delay necessary economic adjustments
- Primary deficits eventually become unsustainable
He presents Greece’s recovery as proof that fiscal discipline and growth can coexist.
Britain and the EU
On the possibility of the UK rejoining the EU, Mitsotakis is skeptical but not dismissive.
He says:
- Brexit was a traumatic experience for Europe
- The UK can build a stronger strategic partnership with the EU
- But any relationship must be mutually beneficial, not one where Britain tries to “have its cake and eat it too”
Main Takeaways
- Freedom of navigation is non-negotiable for Greece and Europe, especially in the Strait of Hormuz.
- The Middle East conflict is already affecting Europe mainly through inflation and energy costs.
- Greece wants Europe to move from rhetoric to real defense and security cooperation.
- Mitsotakis sees the war in Ukraine, the EU’s competitiveness problem, and energy dependence as part of the same strategic challenge.
- Greece presents itself as a post-crisis success story, but one that still needs reform to sustain the recovery.
Notable Insights
- “We cannot accept it. Europe cannot accept it.” — on paying Iran to pass through Hormuz
- “What happened in Cyprus was essentially a de facto activation” of EU mutual defense cooperation.
- “The lesson of Greece is that reforms do pay off.”
- Europe must stop outsourcing too much of its security and competitiveness to others.
Overall Summary
This interview presents Mitsotakis as a pro-reform, pro-defense, and strongly Atlanticist yet increasingly Europe-centric leader. He argues that Greece’s recovery gives it credibility in debates about fiscal discipline, energy security, and strategic autonomy. At the same time, he warns that Europe faces a new era of pressure from war, inflation, and geopolitical fragmentation, and must respond with stronger coordination, tougher reforms, and more credible defense capacity.