“The commitment to fiscal seriousness is independent of the EU’s fiscal rules, as healthy public finances are a prerequisite for sustainable development”, underlined the Minister of National Economy and Finance Kostis Hatzidakis, at the event organized by the State Budget Office in the Parliament. in the context of the annual OECD conference on public finances, which is hosted by Greece.

Kostis Hatzidakis stated that “fiscal severity, tax reduction combined with tackling tax evasion and structural reforms to improve the business environment and attract investment, are the pillars of economic policy that have yielded positive results in the past five years and will be maintained by accelerating the rate of their implementation”.

Analyzing the pillars of the economic policy, Mr. Hatzidakis noted, among other things:

  • The commitment to fiscal soundness is independent of EU fiscal rules, as sound public finances are a prerequisite for sustainable growth. “In the coming years we expect primary surpluses above 2% of GDP, while public debt is expected to decline further, reaching 146% of GDP in 2025.” “Are these predictions overly optimistic? Judging by experience so far, the opposite is more likely! In recent years, our economy has systematically exceeded forecasts. And our goal is to continue positively surprising everyone, both inside and outside our country,” the minister emphasized.
  • In the area of ​​taxation, the policy will focus, he said, on tackling tax evasion and avoidance, not only for reasons of fairness but also because it allows for a simultaneous increase in public revenue and a reduction in the tax burden on businesses and households. “We have already recorded some notable successes on this front in recent years. For example, the VAT loophole was reduced from 23% in 2018 to 15% in 2023, while total tax revenue increased by 9.1% in 2023, compared to 2022, without any increase in tax rates. But we still have a lot of work to do”, said Mr. Hatzidakis. “Last December we passed a tax reform with 11 key measures aimed at further reducing tax evasion. These measures include linking POS to cash registers, further restrictions on the use of cash, a fairer taxation system for the self-employed, based on imputed income, expanding the use of new technologies, more efficient and transparent controls. We are now focusing on the implementation of this legislation and we have very good results”, he emphasized.

Regarding the implementation of the reforms, Mr. Hatzidakis emphasized that the Ministry of Finance is focusing its efforts in four areas which are:

The upgrading of the banking system by reducing non-performing loans, strengthening competition and implementing the state’s disinvestment program from its holdings in systemic banks.

The change of the production model with an emphasis on the areas where we have a comparative advantage, innovation, extroversion and business growth.

The utilization of public property, through concessions and privatizations. “In a period of 11 months, we completed 10 transactions of a strategic nature which generated revenues of more than 7.1 billion euros. We will soon introduce legislation that will radically transform the Hellenic Holdings and Property Company into a growth pillar for the Greek economy. By creating in collaboration with the ESM and the European Commission a new National Investment Fund and by providing greater flexibility to the subsidiary companies of the Superfund, based on the successful precedent of PPC”, pointed out Mr. Hatzidakis.

The full utilization of the NSRF and Recovery Fund funds. “We are already pioneers in the absorption of the RRF having received 14.7 billion euros. And a few days ago, we applied for another 2.3 billion euros. We are also among the leaders in absorbing Cohesion Funds. But we want to further accelerate uptake and enhance transparency. That is why we will proceed with an important reform of the Public Investment Program”, the minister underlined and concluded:

“Over the last five years, the Greek economy has achieved a remarkable turnaround and has emerged as a pleasant surprise for Europe. We have proven that we can resist the populist temptations of loose fiscal policy. We have shown that we can undertake ambitious reforms, regardless of the political cost. Populist rhetoric no longer dominates public debate. It has been replaced by a rational approach that focuses on solutions and results. I believe that what we are witnessing today in Greece can be described as a revolution of common sense. We have learned from the suffering of the previous decade and will move forward combining fiscal seriousness with a pro-business approach.”