Increased grantand tax incentives will exist for mergers-innovation, while the bill for corporate transformations will soon be made public.

This was announced by the Minister of National Economy and Finance Kostis Hatzidakisspeaking at the Money Review’s Mergers & Acquisitions Summit, saying the government is promoting a modern, simple and transparent framework for corporate transformation, tax incentives and increased NSRF grants and the Development Bank for mergers and investments in research and innovation.

Mr. Hatzidakis mentioned that acquisitions and mergers constitute key tool for the evolution of the economy, as they lead to the creation of larger and more dynamic companies that can be competitive at an international level and at the same time offer more and better jobs. In addition, they are linked to the attraction of investment which implies an inflow of capital into the country, but also often an inflow of know-how from abroad.

In this context, he said, in addition to sound economic policy, with an emphasis on reforms and the cultivation of an investment-friendly climate, the government is proceeding with specific interventions to encourage mergers which include the following:

  • Bill on corporate transformations to be tabled soon for voting. “Today there is a scattered and fragmented framework that starts in 1972 and spreads over laws of different decades. And this, understandably, does not contribute to an investment-friendly environment. Our goal is to form a clear regulatory framework, which will be the central point of reference for companies and investors who want to proceed with mergers”, emphasized Mr. Hatzidakis.

This bill will include, among other things, tax incentives for mergers – in addition to the incentives established 3 years ago by the government – but also for investments in research and development, since, as the minister noted, innovation and growth are largely interrelated concepts.

  • Additional financial incentives for mergers and innovation from the NSRF and the Development Bank, to be implemented by autumn. In particular, further funding is provided for investment by companies that are the product of a merger, so that these companies have additional means for growth and innovation.

“Sustainable rates of economic growth presuppose a more competitive economy. And this, in turn, presupposes larger, more outward-looking businesses. With incentives and without coercion because we are not a Soviet country, but there is no economist regardless of political orientation who does not suggest that we move in this direction”, concluded the minister.