“Citizens do not want us to return to the recipes of fiscal populism. Demagogic and populist recipes have been tested and failed in our country.”
This was pointed out by the Minister of National Economy and Finance, Kostis Hatzidakis, during his speech this evening at the 5th international conference of the Greek Chamber of Commerce, on the theme “The world in transition”.
“We are listening,” he added, “to the messages. But we move forward with a sense of national responsibility. We do not have the right to squander the progress of recent years. We must move forward with seriousness and credibility in an effort that takes on added importance in an environment full of uncertainty.”
Addressing, as he noted, economists, he raised the questions:
- Does anyone believe that the country can consistently spend more than it earns?
- Does anyone think we need to increase debt again to pay an ever-increasing public debt?
- Does anyone believe we can achieve high and sustainable growth rates without increasing our productivity?
- Does anyone believe this can be achieved without productive investment?
“I believe, notice you don’t believe in these things either, and neither do the citizens.”
Ascending
Hatzidakis stated that the Greek economy, in an unstable and uncertain international environment, is on the rise, highlighting the rapid recovery from the pandemic, the increase in investments by 40% compared to 2019, the increase in exports which marked the highest percentage increase in the EU , the reduction in public debt, which is the fastest at EU level since 2020 to date, the reduction in unemployment by 8 points. Culminating in the recovery of investment grade
He presented the initiatives undertaken by the government after the elections, including the law to limit tax evasion, the regulations to strengthen competition in the banking system, the servicers and the extrajudicial mechanism, the 10 privatizations and concessions made in the last 11 months and brought 7.1 billion euros to the public coffers. He also presented the measures to increase citizens’ incomes, such as the increase in salaries of public servants after 14 years, the new increase in pensions, the increase in tax exemption for families with children, the increase in the birth allowance, the new increase in the minimum wage.
Priorities
He also reiterated that the main priorities of our economic policy for the next 12 months include:
1. Continuation of the serious and responsible fiscal policy, which is the basis of the overall economic effort. “In the context of the new rules,” he noted, “the surpluses that may arise will not automatically go to benefits, but we will keep them for the difficult years and for a further reduction of the public debt. This is what every prudent head of household does. This is what a prudent government should do, especially in an international environment characterized by instability and uncertainty.”
2. Building a stable, fair and business-friendly tax framework. “We estimate that fully implementing the 11 measures to limit tax evasion that we voted on last December will generate an additional €2.5 billion in annual revenue by 2027. The ultimate goal is to create the fiscal space needed to provide greater tax relief to those who currently bear a disproportionate burden,” he said.
3. Strengthen and improve the functioning of the financial system, with the creation of the so-called 5th banking pillar, resolution of all pending issues related to the Hercules program, greater reinforcement of transparency and fairness in purchases, expansion of the IRIS direct payment system, facilitating access to bank loans for SMEs.
4. Incentives for the diversification and modernization of our production model. Simplifying the fragmented and fragmented legislative framework for mergers and establishing tax and financial incentives for mergers.
5. Optimal use of the Recovery Fund and NSRF funds. “We are in 3rd place in terms of absorption of the NSRF 2021-2027 and in 6th place in terms of absorption of the TAA – well above the European averages. But we need to move even faster and more efficiently”, stressed Mr Hatzidakis.
6. Implementation of an integrated plan for the use of public assets, with the new institutional framework for the modernization of the operation of the Superfund and its subsidiaries, the creation of a National Investment Fund and implementation of the ETAD property use plan.
“With all the mistakes, with all the delays, in our country over the last five years, we are experiencing a revolution of common sense,” Mr. concluded. “In my opinion, the recent result of the European elections does not change that. It is not a call to change direction or to hit the brakes. On the contrary, it is a message that we must try even harder, go even faster and more efficiently. With the aim of transforming Greece into a modern European country.”