“We cannot return to the previous Stability and Development Pact,” said the Minister of National Economy and Finance Kostis Hatzidakis, in a speech yesterday at the Greek-French Chamber of Commerce & Industry. At the same time, he referred extensively to 5+4 challenges for the Greek and European economy.

According to the minister, the new production model, the increase in employment, the fight against tax evasion, the more dynamic banking system, the facilitation of investments and the promotion of privatization, are the ministry’s priorities for dealing with the main challenges of the Greek economy . Correspondingly at the European level, the priorities include the revision of fiscal rules in a way that ensures the limitation of deficits and public debt, without undermining growth. “We cannot go back to the previous regime of the Stability and Development Pact, which was designed in different circumstances and for different needs,” Mr. Hatzidakis pointed out.

In particular, referring to the Greek economy, he described five key challenges:

1. Redirection of the country’s productive model towards a more extroverted, innovative and resilient model.

“We will pursue this through policies such as: the incentives for productive investments (e.g. in the digital and green transition of businesses), the incentives to grow businesses (through acquisitions and mergers), the modernization of the corporate governance framework, the strengthening of stability of the financial system, liquidity and access to alternative sources of financing”, said Mr. Hatzidakis.

2. Broadening the labor supply by removing barriers to greater participation in the labor marketpolicies to upgrade training and skills certification in occupations in greater demand, initiatives to enhance the employability and employment of young women and older workers.

3. Combating tax evasion. “We will step on the serious work of the previous four years. We will apply what has been successful in other advanced countries. And we will take full advantage of the technology’s potential,” he pointed out.

4. Transition of the banking system to the next phaseby disinvesting the Financial Stability Fund, increasing competition through non-bank lending and making the stock market and government bonds more attractive

5. Attracting investments, sector where Greece already achieved a record in Foreign Direct Investments. “However, we need to do more”, noted Mr. Hatzidakis, pointing out the strong weapons available to the country, such as the Recovery Fund, the favorable tax and licensing framework and government stability, noting however the need to address the delays in the administration of justice. He also announced a new generation of concessions which include the rest of the regional airports, Attiki road, etc.

Referring to the European context, Mr. Hatzidakis focused on four dominant challenges, in addition to dealing with inflation, which is gradually receding:

1. Strengthening Europe’s international competitiveness and strategic autonomy. As the minister noted, there is a need for greater diversification of energy supply sources, deepening of the common market, stronger cooperation in capital market matters, banking integration.

2. Adjustment of fiscal rules to ensure the limitation of deficits and public debt without undermining growth. Mr. Hatzidakis said that the set of proposals submitted by the European Commission is moving in the right direction, as the new framework will place greater emphasis on medium-term fiscal planning, recognizing the need for more investments and reforms that promote growth.

3. Accelerating the dual digital and green transition. “Our ability to adapt will be our critical comparative advantage,” he said.

4. The maintenance of social cohesion. As he said, we should “ensure that all European citizens enjoy the benefits and no one is left behind”.