The successful course of the Greek economy and the “keys” for adapting to the new fiscal rules of the European Union were analyzed in 9th Delphi Economic Forum.

According to Thanos Petralia, Deputy Minister of National Economy and Finance, the new rules bring concrete timetables for the formulation of economic policy, giving governments flexibility on how to maintain the objectives of the Stability Pact. “The key word is stability. We must maintain the goals and apply the rules step by step” explained Mr. Petralias. During the debate, moderated by Vassilis Tsekouras, journalist and presenter of Action24, the Deputy Minister of National Economy and Finance emphasized that planning is no longer based on primary surpluses, but on total annual government expenditure (around 100 billion euros), from which the country cannot deviate from. The economic staff has already announced measures for 2025, which will be included in the stability program, which will be presented by the Ministry of National Economy and Finance at the end of April. It includes, among other things, a reduction in social security contributions, an increase in pensions and a reduction in the tax on farmers.

“Greece was and is a positive surprise for Europe. We must remain reliable” Mr. Petralias emphasized. He described the reforms in education and justice as important, he said that a demographic plan will soon be presented, while regarding climate change, Mr. Petralias noted that funds of 600 million euros are planned each year for the defense of the country. ENFIA has already been reduced for those who insure their home against natural disasters, insurance is mandatory for companies with a turnover of more than 2 million euros, while the government plans to further mobilize private insurance.

THE Michalis Argyrou, president of the Council of Economic Experts of the Ministry of National Economy and Finance, estimated that the new framework will bring balance to Europe’s fiscal governance. Greece, as he said, has adapted to this new context and needs a prudent and responsible fiscal policy, with realism. “Greece is doing very well and at the same time has the potential to do even better,” noted Mr. Argyrou, adding that the country must maintain stability, consistency and reliability. He underlined that our country emerged as a champion in increasing real disposable income, unemployment is decreasing, while inflation remains a concern, as in other countries.

According to Mr. Argyrou, the quality of growth has changed, with Greece attracting a large number of investments, the number of which has increased by 4% from 2019 to date. “The next step is to make an effort to reach the upper level. In this context, we need reforms in justice, education, the public sector and the workforce, with the specialization and reskilling of workers,” added the president of the Council of Economic Experts of the Ministry of National Economy and Finance.

From the side of Christopher Allen, Resident Economic Adviser in Athens for the European Commission, underlined that the limits of the previous fiscal framework were tested and the new rules will allow more flexibility for member states. “Based on the new rules, Greece is in a very good position and has the ability to initiate further fiscal reforms and investments,” commented Mr. Allen. He called it necessary to provide answers to two basic questions, demographic and climate change. As Mr. Allen said, in addition to population growth, a solution must be found for women’s employment, explaining that currently over 300,000 women in Greece are long-term unemployed, while in total inactive women exceed 1 million Among other things, part-time work incentives should be introduced, through community service programs.

On climate change, Mr. Allen gave the example of Japan, where the State is conducting comprehensive risk assessments, has built early warning systems and PPP programs with insurance companies for the areas most at risk of earthquakes and floods. They also learn from the disaster and carefully plan to rebuild in the safest way possible.