The finance minister developed the ministry’s priorities while speaking at the Economist conference
“Over the last 5 years, Greece, without becoming a paradise, has taken significant steps forward”, said the Minister of National Economy and Finance, Kostis Hatzidakis, from the floor of the 28th Annual Economist Government Roundtable, citing as a typical example the fact that more than 400,000 unemployed people found work.
“This is no accident,” he said, adding that “it was based on fiscal seriousness and a business-friendly attitude.” As the minister said, “we must increase resilience to challenges, to permanently close the wounds of the past decade and converge with the EU average”. He cited further improvement in the business environment, faster administration of justice, acceleration in green and digital transition and further reduction of tax evasion by further reduction of taxes. He stated that there is a prudent fiscal policy, which will be reflected in the Stability Program that will be presented in the autumn in Brussels, and an effective and fair social policy.
In the 2025 budget, he added, there will be a further reduction in insurance contributions and the abolition of the pretension fee. While, by the end of 2024, there will be the first competition for social compensation through TAIPED, there will be a new format – in consultation with the Commission – for “My Home”, there will be an intervention in the allowance policy for the most correct distribution, as well as demographic actions.
Also, in response to a question about the priorities of the MINISTRY of Foreign Affairs, he stated the following:
– Implementation of the tax reform, so that in the end there will be room for further reduction of taxes.
– Disinvestment of the State from the banks and creation of a 5th pillar in the banking system.
– Legislative continuation of the agenda for improving the operation of the capital market.
– Simplification of the framework for mergers and acquisitions of businesses with tax incentives.
– Reform of public investment rules, with the aim of further modernization and transparency.
– Vote by the end of July on the bill for the new National Investment Fund, which will operate from January 1, 2025.
The president of the Eurogroup, Pascal Donahue, described Greece as “one of the miracles in the eurozone”, from the same panel. He said that from 2020 the change in the Greek economy is typical, from enhanced supervision to growth to above average in Europe. He also said that there are primary surpluses, appropriate levels of borrowing, reducing debt to be sustainable and sustaining investment. At the same time, Mr. Donahue stated that for Europe the main priority must be development. We have avoided recession, he added, and there has been success in reducing inflation, although the cost of living is a challenge, e.g. in Greece and Ireland. It also set as priorities for the EU the development of capital markets which are a competitive disadvantage and the strengthening of competitiveness after the pandemic.
In his presentation, the managing director of the National Bank, Pavlos Mylonas, stated that Greece has outperformed the Eurozone for the 4th year, that growth is reaching a broader base, that 2024 was a record year for Foreign Direct Investments, which reached 3, 5% of GDP and how the gap with the EU in research and development has closed by 50%. On the banking sector, he said banks have strong liquidity and strong equity, while their post-crisis transformation is a “guide”. E.g. they were at the forefront of cashless transactions, invested hundreds of millions of euros in IT, upgraded human capital and are a source of new recruits. He concluded by saying that the banking sector plays an important role in structural changes and that banks will be the leaders of the next era.