Germany is looking to Greece as a potential model for economic reform, according to recent reports. In an interview with the German business newspaper Handelsblatt, Greek Finance Minister Kyriakos Pierrakakis was asked directly about advice he could offer to Germany’s Finance Minister, Lars Klingbeil. Germany is currently dealing with rising public spending and borrowing while trying to boost economic growth. In contrast, Greece is now often cited as a "model of reforms," with achievements such as a historically low unemployment rate, budget surpluses, and economic growth that has outpaced the average in the eurozone. However, Pierrakakis cautioned that successful reforms in one country may not work in another, emphasizing the need for tailored approaches. Greece’s journey to economic recovery is a stark contrast to the severe crisis it faced in 2011 and 2012. At that time, Greece relied heavily on European loans and the International Monetary Fund (IMF) to avoid defaulting on its debts. These loans came with strict conditions, including austerity measures and structural reforms negotiated with the "troika"—a group consisting of the European Commission, the European Central Bank, and the IMF. Germany, under former Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble, was a leading advocate of this approach. Greece was forced to cut public spending, raise taxes, privatize state-owned companies, and overhaul its labor market. Then-Prime Minister George Papandreu even assured Merkel in 2011 that he would continue these painful reforms "whatever the political cost." Merkel, in turn, promised that Greece’s efforts would eventually lead to economic recovery. The cost of these reforms was immense. The Greek economy lost roughly a quarter of its value, and unemployment soared to nearly 27%. However, the financial situation has since improved significantly. In 2025, Greece achieved a public budget surplus of 1.7% of its GDP, and by early 2026, its public debt had fallen to 143.5% of GDP—down from over 200% at the height of the crisis. Investors are now willing to lend to Greece at lower interest rates than to other European countries like France. While Pierrakakis does not recommend that Germany copy Greece’s exact approach, he highlights the importance of financial discipline and efficient public spending. He emphasizes the need for investments in areas like productivity, energy, digitalization, and defense, saying, "One thing is clear: healthy finances are of vital importance." Germany’s current situation, however, is not as dire as Greece’s was in the early 2010s. Germany’s public debt stood at 63.5% of GDP at the end of 2025, compared to Greece’s 146.1%. Still, Germany’s finances are deteriorating due to large-scale spending on defense and infrastructure, with its budget deficit reaching 3.1% of GDP in the first half of 2026. While Greece is not positioning itself as Germany’s teacher on fiscal matters, the interest from Berlin marks a notable historical shift.