From Globalization to Power Politics: Giorgos Papakonstantinou on the New Rules of the Game

13:11 24/2/2025 - Πηγή: Dikaiologitika

As globalization retreats, international institutions weaken, and geopolitical balances shift rapidly, former Greek Finance Minister Giorgos Papakonstantinou discusses the urgent challenges facing global governance.

In an interview with Dnews.gr and journalist Thanasis Koukakis, he reflects on the shortcomings of the European

economic model, the structural deficiencies of the Greek economy, and the broader crisis of international cooperation.

His insights coincide with the launch of his new book, The New Rules of the Game – Global Governance for a New World, co-authored with economist Jean Pisani-Ferry, which will be presented at the Athens Concert Hall on February 25. At a time when pressing global challenges—from climate change to artificial intelligence regulation—demand greater international coordination, Papakonstantinou warns that “perhaps never before have the rules of global governance been so weak, nor geopolitics so fragile.” He cautions that if governments fail to bridge the widening gap between international challenges and the mechanisms needed to address them, “we will slide into a transactional world governed solely by the law of the strongest.”

Discussing the European economy, Papakonstantinou highlights a fundamental tension: while the EU excels at regulation, it struggles with innovation. One of its most significant weaknesses, he argues, is the absence of a unified capital market that could finance new ideas and businesses. He also warns that sweeping deregulation initiatives led by the United States could pose a serious threat to the EU if they are not implemented in a balanced way that maintains essential consumer protections and safeguards for European businesses.

Inevitably, the conversation turns to geopolitical developments and the shifting role of the United States, particularly under Donald Trump. Papakonstantinou describes Trump’s approach to Ukraine as a “shock” for Europe, exposing the fragility of existing global governance mechanisms. He warns that Washington’s unilateralism, its disregard for international institutions, and its tendency to bypass the EU in diplomatic affairs are creating a geopolitical reality that Europe must quickly adapt to. He believes that strengthening Europe’s common defense policies is now unavoidable, predicting that “in the near future, we will see decisions on joint European borrowing to facilitate this direction,” allowing the EU to build greater strategic autonomy.

When it comes to Greece, Papakonstantinou points to an unsettling stagnation in the country’s economic transformation. While he acknowledges the progress of certain export-driven businesses, he criticizes the fact that much of today’s investment—largely concentrated in real estate and speculative funds—fails to contribute to long-term economic development. He argues that Greece’s reliance on these types of investments does not transform the economy or boost productivity, a reality reflected in the country’s persistently low projected growth rate of just 1-1.5% over the medium term.

Beyond economic concerns, Papakonstantinou touches on the growing crisis of public trust in institutions and the rise of anti-establishment sentiment across Europe. He warns that politics cannot rely solely on statistics and technical policies; it must also address the emotions and concerns of citizens. “When people feel excluded from economic growth and political decision-making, they become vulnerable to anti-systemic rhetoric,” he explains, emphasizing that the solution is not just more economic growth but a political vision that makes people feel genuinely included.

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