The Greek Current

Friedrich Merz officially became Chancellor of Germany this week, but only after two rounds of voting in the Bundestag - a first for a new chancellor in postwar German history. His initial failure to clinch the position raises concerns about his leadership, and has Europeans asking whether Germany under Merz can step back into its traditional European leadership role. Katja Hoyer, a historian, journalist and author of Beyond the Wall: A History of East Germany, joins Thanos Davelis as we break down whether Merz is emerging weakened out of the gate, and look into what this means for Europe. You can read the articles we discuss on our podcast here: A Very Rough Start for Germany's New Chancellor Merz [https://www.bloomberg.com/opinion/articles/2025-05-06/germany-chancellor-friedrich-merz-off-to-a-very-rough-start?srnd=undefined&embedded-checkout=true] Merz is weakened from Day 1. Europe will pay the price. [https://www.politico.eu/article/friedrich-merz-europe-germany-leadership-donald-trump/] Friedrich Merz becomes Germany’s chancellor—after a painful defeat [https://www.economist.com/europe/2025/05/06/friedrich-merz-becomes-germanys-chancellor-after-a-painful-defeat] France and Germany to set up joint security council [https://www.ft.com/content/ff041474-2dd7-4556-ac2e-d01136fee8c2] US lawmakers sound alarm over Turkey’s aggressive behavior, urge Trump to confront Erdogan [https://www.ekathimerini.com/politics/foreign-policy/1269201/us-lawmakers-sound-alarm-over-turkeys-aggressive-behavior-urge-trump-to-confront-erdogan/] EU sets out possible 95-billion-euro response to US tariffs [https://www.reuters.com/business/autos-transportation/eu-sets-out-95-bln-euro-countermeasures-us-tariffs-2025-05-08/]

Since the pandemic we’ve seen the Greek government step in to tackle low wages, raising the minimum wage from €650 in 2019 to the latest announcement in early April bringing the gross wage up to €880. These steps come amid both a cost of living crisis and a labor shortage ahead of the summer in the tourism industry, but also other key sectors like agriculture and construction. Yannis Mouzakis, the co-founder and editor of Macropolis.gr, joins Thanos Davelis as we look into the story of Greek wages, breaking down why this remains a big challenge for the government. You can read the articles we discuss on our podcast here: Minimum wage increase crashes against reality of Greeks' low purchasing power [https://www.macropolis.gr/?i=portal.en.the-agora.15074] Greece and Egypt sign strategic partnership agreement in Athens [https://www.ekathimerini.com/politics/foreign-policy/1268995/greece-and-egypt-sign-strategic-partnership-agreement-in-athens/] European Parliament maintains block on restarting Turkey accession talks [https://www.ekathimerini.com/politics/foreign-policy/1269005/european-parliament-maintains-block-on-restarting-turkey-accession-talks/]

On Tuesday President Trump said that the US would stop attacking the Houthis in Yemen because the group had "capitulated", adding that the Houthis had pledged to stop attacking ships in the Red Sea. This move comes after pressure from both regional players like Saudi Arabia - which President Trump is planning to visit - and from within the MAGA camp. Sean Mathews, a journalist for the Middle East Eye covering the Middle East, North Africa and the Balkans, joins Thanos Davelis as we look into this announcement and break down what it means for the wider region - including Greece.  You can read the articles we discuss on our podcast here: Exclusive: Saudi Arabia pressed Trump to stop attacks on Yemen ahead of visit [https://www.middleeasteye.net/news/exclusive-saudi-arabia-pressed-trump-stop-attacks-yemen-ahead-visit] Trump says the US will stop bombing Yemen’s Houthis after rebels say they’ll stop targeting ships [https://apnews.com/article/trump-houthis-end-of-bombing-yemen-israel-e2f08ac04024ef3d6409b4ce97092489] Greece aims to boost domestic defense industry’s role, Dendias says [https://www.ekathimerini.com/politics/foreign-policy/1268897/greece-to-boost-domestic-defense-industrys-role-in-procurement-programs-dendias-says/] Greece leverages defense spending to underscore US alignment [https://www.ekathimerini.com/politics/foreign-policy/1268968/greece-leverages-defense-spending-to-underscore-us-alignment/] Merz's messy path to power raises questions for future government [https://www.bbc.com/news/articles/ce8g8mx50nyo] Merz is weakened from Day 1. Europe will pay the price. [https://www.politico.eu/article/friedrich-merz-europe-germany-leadership-donald-trump/]

President Trump said that he had a "very good and productive" call with Turkish President Erdogan, adding that Erdogan had invited him to Turkey and that he would also be coming to Washington. The call comes in the wake of a new crackdown on dissent in Turkey following the arrest of Istanbul mayor Ekrem Imamoglu, amid speculation that Turkey could send its Russian S-400 missiles to Syria, and as Israel and Turkey are increasingly at odds over Syria. Henri Barkey, an adjunct senior fellow for Middle East studies at the Council on Foreign Relations and the Cohen chair in international relations at Lehigh University, joins Thanos Davelis as we look into Trump and Erdogan’s call and the wider messages it sends. You can read the articles we discuss on our podcast here: Trump says he had a productive call with Turkey's Erdogan, visits planned [https://www.reuters.com/world/trump-says-he-had-productive-call-with-turkeys-erdogan-visits-planned-2025-05-05/] EU to set out plans to halt Russian gas imports by end-2027 [https://www.ekathimerini.com/economy/energy/1268847/eu-to-set-out-plans-to-halt-russian-gas-imports-by-end-2027/] Greece’s booming tourism sector in race to find workers as summer season looms [https://www.theguardian.com/world/2025/may/05/greece-booming-tourist-economy-workers]

While visiting the Turkish-occupied northern part of Cyprus this weekend, Turkish President Erdogan said that his country’s presence on the island will continue for centuries, adding that “whoever doesn’t know this must learn it.” Erdogan’s speech drew a swift response from Greece, and comes as the UN is looking to restart talks on the Cyprus issue. At the same time, Athens is looking to resume work on the Great Sea Interconnector that will link its electricity grid with Cyprus and eventually Israel. This could once again test Greek-Turkish relations as Ankara has tried to block this project in the past. Vassilis Nedos, Kathimerini’s diplomatic and defense editor, joins Thanos Davelis with the latest analysis from Athens. You can read the articles we discuss on our podcast here: Athens decries Erdogan’s remarks from Cyprus’ Turkish-occupied north [https://www.ekathimerini.com/politics/foreign-policy/1268723/athens-decries-erdogans-provocative-remarks-from-cyprus-turkish-occupied-north/] Erdogan: Turkish occupation of northern Cyprus will last ‘for centuries’ [https://www.ekathimerini.com/politics/foreign-policy/1268717/erdogan-turkish-occupation-in-northern-cyprus-will-last-for-centuries/] Athens and Sofia seal deal over river access [https://www.ekathimerini.com/politics/foreign-policy/1268600/athens-and-sofia-seal-deal-over-river-access/] Cyprus and Israel reach agreement on IMEC electrical interconnection and natural gas development [https://knews.kathimerini.com.cy/en/news/cyprus-and-israel-reach-agreement-on-imec-electrical-interconnection-and-natural-gas-development]