“The objectives of reducing tax evasion are twofold: You will see the support of social policy in the 2024 budget an increase in education and health spending based primarily on interventions in the tax bill. And at the end of the journey, the ultimate goal is to further reduce tax rates for everyone, in the context of a fairer and more productive system.” This was pointed out by the Minister of National Economy and Finance Kostis Hatzidakis speaking today at the Circle of Ideas conference entitled: “Greece after VII: Asymmetries and national agenda”.

“No one is saying that there is no tax evasion. The problem starts when you go to face it”, the minister said. “Today 85% of freelancers who have income exclusively from freelancing, declare an income of less than 10,000 euros. That is, below the minimum wage. And they pay tax along with the pretension fee on average 867 euros while the average worker pays 1160 euros. I ask the question to rightists, leftists, liberals and socialists: do we want this? If we want it, let’s continue it, but let’s stop the discussion about the employees and pensioners that they are the underweights of the tax system”, he added.

Note that the bill does not increase tax rates but the effort is focused on catching hidden taxable material. “It is one thing to support entrepreneurship and another to cover an illegal activity. I know I’m upsetting people and it’s not easy, but let’s not ideologicalize tax evasion,” he stressed.

Answering questions, Mr. Hatzidakis underlined that the target to increase the average salary to 1500 euros by 2027 is not that far as it is now at 1200 euros. He noted that the previous wage increases had no impact on competitiveness and employment and added that the government will move in the same way, combining economic efficiency with social sensitivity. “We are not putting the cart before the horse, nor are we off target,” he said.

Finally, referring to the negotiation of the new EU fiscal rules, he estimated that no agreement is expected at the ECOFIN meeting of Thursday. He stated that Greece is in favor of greater flexibility so that fiscal policy does not stifle growth, but reiterated that regardless of the outcome of the negotiations, “the government will remain on the path of fiscal seriousness and discipline, with a pro-investment policy that creates jobs and conditions for social dividend, because we have no doubt that we are constantly being watched by markets and investors”.