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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. So Greece has been

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Speaker 1: involved in another round of talks convened by the French

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Speaker 1: President in Manuel Makhuo, on how to best respond to

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Speaker 1: the US Russia dialogue on Ukraine. The country is amongst

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Speaker 1: the highest defense spenders as a percentage of GDP and NATO,

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Speaker 1: a topic with President Trump often uses to criticize what

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Speaker 1: he says is a lack of investment by the military alliance. Well,

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Speaker 1: the Greek Prime Minister Kitiyakos Mitsotakis joins US now for

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Speaker 1: an exclusive conversation from Athens. Prime Minister, thank you so

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Speaker 1: much for joining US. President Trump has called President Zelenski

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Speaker 1: a dictator.

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Speaker 2: What's your reaction when you hear that?

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Speaker 3: Alfresin Now, thanks for having me. You know, President Trump

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Speaker 3: is a very smart man, and you know, he has

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Speaker 3: his own unique way of expressing himself. But I think that,

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Speaker 3: you know, in principle, I think we need to agree

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Speaker 3: on certain fundamentals. And I'm sure that these statements that

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Speaker 3: I will make are also sort of also reflective view

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Speaker 3: of our American friends that we need peace through strength,

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Speaker 3: that obviously there can be no solution for Ukraine without

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Speaker 3: the Ukrainians being involved, and of course there can be

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Speaker 3: no security arrangement for Europe without the Europeans also being involved.

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Speaker 3: So I think we're at a relatively delicate state when

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Speaker 3: it comes to these discussions. And of course Europe also

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Speaker 3: needs to come up and emerge with a unified voice,

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Speaker 3: and we need also to do what is expected from

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Speaker 3: US in order to commit to our own security, not

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Speaker 3: just Ukraine security.

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Speaker 1: But Prime Minister, what can Europe do concretely? So can

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Speaker 1: they move without the US or is it talking with

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Speaker 1: the US?

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Speaker 2: What are the steps that you see going forward?

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Speaker 3: Well, I've always been in US strong advocate of Europe

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Speaker 3: doing more to take control of its own security priorities.

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Speaker 4: As you know, and as you.

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Speaker 3: Pointed out, Greece is a country that is spending more

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Speaker 3: than three percent of our GDP on defense, and we

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Speaker 3: have been consistently exceeding the two percent threshold and at

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Speaker 3: times when richer European countries were not contributing to our

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Speaker 3: common sort of defense budget.

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Speaker 4: In the way that they should.

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Speaker 3: So I mean this is really the time when we

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Speaker 3: need to move from words to actions. We need to

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Speaker 3: spend more on defense, We need more physical flexibility when

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Speaker 3: it comes to the European rules to allow us to

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Speaker 3: spend more on defense without breaching European expenditure rules. This

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Speaker 3: is something which has been acknowledged by the President of

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Speaker 3: the Commission. I've been lobbying very hard to get to

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Speaker 3: that point, and of course I think we also need

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Speaker 3: some sort of joint European borrowing facility that will allow

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Speaker 3: us to implement projects of European common interests, such as

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Speaker 3: a European missile shield, which.

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Speaker 4: Would benefit the entire continent.

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Speaker 3: Again, we've been talking a lot about these priorities of

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Speaker 3: the past years, and I think now we're faced with

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Speaker 3: what I would call sort of a rude awakening in

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Speaker 3: a sense, and we need to move from words two

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Speaker 3: to action. So one President Trump many years ago pointed

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Speaker 3: out that we didn't spend enough on defense. It was

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Speaker 3: in principle right, and we need to make sure that

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Speaker 3: we make up for the lost ground.

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Speaker 1: But premierster in terms of timeline, when will Europe accept

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Speaker 1: the need for joint bonds?

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Speaker 2: Again?

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Speaker 1: Are those conversations accelerating at pace? Will it become a

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Speaker 1: reality soon?

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Speaker 3: What I expect will become a reality as soon as

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Speaker 3: the next European Council is the first sort of intervention

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Speaker 3: which I talked about. We need more physical flexibility, so

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Speaker 3: when we spend more on defense, you know, the incremental

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Speaker 3: spending should not count towards our European deficit calculations. This

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Speaker 3: is a decision that we could make theoretically as early

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Speaker 3: as the European Consul in March, and frankly, we cannot

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Speaker 3: delay this decision any longer should we choose to spend more.

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Speaker 3: And again I do need to point out that greed

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Speaker 3: has been spending significantly more than our European allies. We

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Speaker 3: need the necessary physical flexibility in order to be able

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Speaker 3: to do that. So I could expect a decision regarding

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Speaker 3: the fiscal flexibility, what we call the exemption from the

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Speaker 3: general sort of the activation of the general escape claus

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Speaker 3: to come as early as March. I think talking to

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Speaker 3: many of my European colleagues who could be classified as frugals,

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Speaker 3: they also recognize that in extraordinary times we need to

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Speaker 3: take extraordinary measures. So the discussion about some sort of

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Speaker 3: joint European borrowing facility is certainly on the table. And

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Speaker 3: I also expected to pick up esteem very quickly.

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Speaker 1: I mean, I think Bloomberg Economics estimates that around three

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Speaker 1: point one trillion dollars of the next ten years. Can

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Speaker 1: Europe find that money? Come up with that money?

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Speaker 3: I don't think that the money can come up exclusively

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Speaker 3: from national budgets. So, as I told you, we need

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Speaker 3: a combination of national financing and European financing. We know

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Speaker 3: that we have significant capability shortcomings in air defense, in

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Speaker 3: military transport. These are gaps that we need to fill.

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Speaker 3: But again I do want to be very very clear,

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Speaker 3: this change cannot take place from one moment to the next. Hence,

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Speaker 3: in spite of whatever tension may have arisen, I remain

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Speaker 3: a strong proponent of the value of the Transatlantic partnership

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Speaker 3: and gas. Sometimes you know, American friends may express themselves

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Speaker 3: in a different way, but when they sort of point

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Speaker 3: the figure at us and tell us you need to

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Speaker 3: do more for your own security, again, in principle they

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Speaker 3: are right. I'd be making the same argument for quite

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Speaker 3: some time now.

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Speaker 1: Prime Minister, who will speak for the Europeans if you're

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Speaker 1: Backtally gets a seat at the table with Donald Trump

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Speaker 1: and Vladimir Putin.

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Speaker 4: That is a decision we still have to make.

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Speaker 3: One of the topics that we could discuss is to

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Speaker 3: appoint a very high level sort of EU representative who

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Speaker 3: could speak on behalf of the European Union. Because right

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Speaker 3: now we as you know, we have the person of the

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Speaker 3: depend Council or the person of the Commission. You have

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Speaker 3: the high representative, but we may choose to actually appoint

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Speaker 3: you know, a special sort of representative who needs to

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Speaker 3: be someone with well, with a lot of authority and gravitage,

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Speaker 3: who could represent the European Union. I think it is

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Speaker 3: necessary to speak with one voice.

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Speaker 1: I mean, it does seem that Vladimir Putin managed to

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Speaker 1: achieve what they wanted, which is speaking to the US

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Speaker 1: directly superpower to superpower. What can the EU now do

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Speaker 1: to get a seat at the table for Brussels but

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Speaker 1: also Kiev.

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Speaker 3: Well, first of all, when we talk about, you know,

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Speaker 3: security arrangements in Europe, Obviouslyurope will have to be involved.

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Speaker 3: One of the discussions that are taking place is related

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Speaker 3: to future security guarantees to Ukraine. I think, you know,

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Speaker 3: many expect that Europe will have to role to play

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Speaker 3: when it comes to defining these security guarantees.

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Speaker 4: That's why I spoke.

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Speaker 3: About the need to discuss the new European security architecture,

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Speaker 3: obviously with the involvement of Europe. But again, the more

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Speaker 3: committed Francine we are to address in chronic shortcomings of

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Speaker 3: the European Union, the more credibility we will have in

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Speaker 3: playing an active role in these negotiations. That's why I

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Speaker 3: do expect and I'm calling for very concrete results. We

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Speaker 3: should be reflected in the conclusions of the next European Council.

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Speaker 4: We don't have a minute to waste.

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Speaker 1: Pre Minister Donald Trump also announced new terrorifts on auto

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Speaker 1: imports as soon as April.

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Speaker 2: Is the EU considering or should it.

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Speaker 1: Consider to actually for its own terrorf rate to avoid

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Speaker 1: some of the American duties.

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Speaker 3: As you know, this is an exclusive competence tariffs and traders,

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Speaker 3: and exclusive competence of the European Commission. We don't want

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Speaker 3: to get into a trade war with the United States.

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Speaker 3: But should it be necessary, of course europe is going

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Speaker 3: to respond. I think we still have time to avoid that.

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Speaker 3: I think it would be bad for both our economies,

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Speaker 3: both the European economy and the American economy. And I've

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Speaker 3: always been advocating that if there are unilateral gestures that

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Speaker 3: you can make to level the playing field, it should

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Speaker 3: proceed with doing so sooner.

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Speaker 4: Rather than later.

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Speaker 3: But again, we should have no doubt that in case

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Speaker 3: Europe is put in a position where tarists are imposed

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Speaker 3: unilaterally on European.

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Speaker 4: Goods, Europe will be forced to respond.

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Speaker 3: But I'm cautiously optimistic that we will be able to

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Speaker 3: avoid this error.

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Speaker 1: Does it have to dear to WTR rules or do

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Speaker 1: you think Europe should try and get a INNI actual

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Speaker 1: deal with the US directly.

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Speaker 3: To be honest, I think this is going to be

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Speaker 3: a discussion that will take place between Europe and the

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Speaker 3: US directly, and I think we all see the value

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Speaker 3: of making sure that we have.

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Speaker 4: You know, a level playing field.

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Speaker 3: And again, if there are unnatural gestures that Europe can

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Speaker 3: make to level the playing field in goods where maybe

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Speaker 3: we have sort of higher tariffs than our American friends

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Speaker 3: right now, we should have the course to do so.

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Speaker 1: Prime Minister, I also want to ask you something domestically

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Speaker 1: about the center in the earthquakes that of course are

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Speaker 1: being decreasing in number, but the outlook is quite uncertain.

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Speaker 1: What kind of impact would that have on the tourism season?

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Speaker 3: Well, I noticed you the Prime Minister of Iceland before

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Speaker 3: me on the show. So it seems to be quite

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Speaker 3: concerned with countries are geologically active. Yes, we've had a

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Speaker 3: lot of sort of medium sized earthquake activity taking place

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Speaker 3: on Santorini. We've seen a reduction of the activity over

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Speaker 3: the past days, which is encouraging. Of course, we always

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Speaker 3: listen to the scientists and we have to prepent for

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Speaker 3: for all eventualities. But you know, Greece is a safe

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Speaker 3: from a country, and this is a message I want

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Speaker 3: to communicate. And no one can predict the future, but

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Speaker 3: you know, more cautiously optimistic about what is happening in Santorini,

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Speaker 3: and you know, things go hopefully according to plan, will

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Speaker 3: return to sort of a normal state relativis.

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Speaker 1: Prime mister, thanks so much for giving us a bit

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Speaker 1: of your busy schedule today. That was, of course a

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Speaker 1: great Prime Minister. Kiriakos meets attacks