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Visiting the small economic miracle

In Greece, Economics Minister Habeck is confronted with new realities. The former problem child of the EU can present good growth figures – and is now only too happy to show this to the struggling Germans.

Lothar Lenz

Jannik Pentz

Kyriakos Mitsotakis is almost bursting with pride. The Prime Minister of Greece is sitting at a long, large table in a windowless conference room. Robert Habeck has just taken a seat directly opposite. And the German Minister of Economic Affairs is now hearing in detail how well the Greeks are doing at the moment.

“We have the second-highest economic growth in the entire EU, right behind Poland,” says Mitsotakis cheerfully. In addition, the government's budget is balanced, and when it comes to money, there is now icy discipline in spending. The Greeks have done their homework and are now only too happy to show the Germans that.

Habeck can only dream of such growth rates

“Congratulations on the great economic figures,” says Habeck briefly and succinctly. He doesn't mention his own figures at first. The German economy is not doing so well at the moment. Habeck can only dream of the Greek growth rates. Gone are the days when the German government could teach little Greece how to manage its economy properly and how to manage its money.

However, growth rates are not everything: During his visit, Habeck also heard that food in particular had become significantly more expensive. And because of the increased ferry prices, many Greeks could no longer afford to vacation in their own country this summer.

Germany is very welcome as a partner country

The business trip to Thessaloniki is actually a pleasant task for Habeck. Germany is very welcome as the partner country of the largest business fair in the country. And the German economy is happy to present itself: More than 130 exhibitors from Germany are gathered in the hall – from small startups to the large Bayer Group.

For Habeck, the difficult issues from home are a long way away. The weakness of the German economy? Budget crisis? Threatening factory closures at VW? None of these are things that Habeck is making a big deal about. In Thessaloniki, the Vice Chancellor prefers to talk about economic opportunities abroad. Greek companies could help to strengthen the German economy. They support each other in this way. The times when people pointed fingers at each other are now definitely over.

Discussions about future Energy supply

In fact, the relationship between Germany and Greece is better than it has been for a long time. According to a recent study by the Friedrich Ebert Foundation, just as many Greeks have a positive image of Germany today as they did before the financial crisis.

Robert Habeck is also using the weekend in Thessaloniki to hold talks about the future energy supply for Western Europe. Germany and Greece have similar goals and timelines for phasing out fossil fuels. Greece could play a key role in the electricity and hydrogen market of the future: the country is richly blessed with sun and wind, and a planned hydrogen pipeline from the Arab world could one day lead via Greece to Western Europe.

When the Federal Minister for Economic Affairs talks about huge solar parks and planned pipelines, about billions in investments and the energy networks of the future, he is in his favorite role: He likes to present himself as a pioneer for the transformation towards climate neutrality.

Budget week is approaching

Habeck is clearly enjoying the fact that he has been received so warmly during his visit to Greece. At home in Berlin, an old issue is already waiting for him. There, the other cabinet members are also preparing for the upcoming budget week in the Bundestag. The budget for the coming year was created under extreme labor pains.

The parliamentary debate will show whether this will become the breaking point of the traffic light coalition. “The coalition is working together quickly and trustingly,” said Habeck, trying to dispel any doubts about the traffic light partners' will to persevere.

In warm Thessaloniki, Habeck is in a combative mood. In the coming week, the coalition can show how well it works together.

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