“Greece has made leaps in the investment sector” highlighted the Minister of National Economy and Finance Kostis Hatzidakis speaking today at the 5th Institutional Management Conference of the Institutional Investors Association. “Despite the pandemic”, the Minister characteristically said, “we noted between 2019-2023 in investments the biggest percentage increase in the entire EU-27! A key contribution to this was the inflow of Foreign Direct Investments, where we have set a number of records and have cumulatively exceeded 27 billion euros!”.

However, noted Kostis Hatzidakis, “We have serious and serious work ahead of us. Because, despite significant progress, we have not yet covered all the lost ground of the last decades – the so-called “investment gap”.

The Minister of National Economy and Finance emphasized that “The basic principle of this government’s policy is that development is not ordered. It comes mainly through investment, public and private.” and presented the most important axes for the further increase of investments:

– Maintaining fiscal stability in order to keep the country attractive to investors. This policy is reflected in the Medium-term Financial-Structural Program 2025-2028, which was presented in the previous days and will be sent for approval by the European Commission.

– Further improving the business environment. After the successive tax reductions of the previous five years (reduction of the corporate taxation rate from 28% to 22% and the taxation of dividends from 10% to 5%) and the recent reduction of one more unit of social security contributions, their cumulative reduction it reaches 5.4 units from 2019.

– Increasing liquidity in the market through a stronger and more competitive banking system. In this context, the Minister made a special reference to the completion of the privatization of 10% of the National Bank with the participation of world-class institutional investors, exceeding by 12 times the international offer and driving the share price 42% higher than the issue that took place on November. In addition, he referred to the creation of the 5th banking pillar through the merger of the Bank of Attica with Pankritia and the granting of housing and business loans from non-banking institutions as well as the expansion of the “Hercules” program by 1 billion euros, so that the rates of non-performing loans in the portfolio of systemic banks to come down to the EU average.

– Initiatives and legislative interventions for strengthening the capital market and further shielding it to make the Stock Exchange more attractive. At the same time, measures are being promoted at an economic and institutional level that directly strengthen the capital market, such as the reduction of taxation for corporate profits, dividends and capital accumulation and tax exemptions for interest from Greek Government bonds. While with a bill promoted by the Ministry of National Economy and Finance, the tax incentives for business “Angel Investors” are expanded. In addition, the tax regime of venture capital funds is being streamlined so that there is an incentive to create investment schemes based entirely in Greece.

– Creation by the beginning of 2025 of the National Investment Fund – by analogy with corresponding investment funds in other EU countries – to strengthen investments in critical sectors, such as the green transition, the circular and blue economy, infrastructures and networks, and high technology. Sectors that are currently not sufficiently covered by investors, but have added value for the economy. Mr. Hatzidakis noted that the Fund will operate as a co-investor with other funds, with minority participations and is expected to start with an initial capital of 300 million euros. As he emphasized, this Fund does not come to “cannibalize” the already existing initiatives, but to function in addition and not as a “Soviet-style state fund”.

– Providing incentives to increase investment. In this context, Mr. Hatzidakis noted that the Government is promoting one of, perhaps, the most competitive frameworks of tax incentives in the EU for research expenses in order to strengthen the connection between businesses and universities and to direct more investments into productive activities, while also creating new financial incentives, in addition to tax incentives, for business mergers and transformations with the relevant bill expected to pass through Parliament before the end of the year.

“Investments are a prerequisite to have new and better jobs. For a better quality of life and a better future for Greek men and women. Therefore, know that when you hear populist voices, the Government, the Prime Minister and especially the Ministry of National Economy and Finance will ignore these voices. We have suffered as a country and we have learned. We will go fiscally as far as we can bear and we will go ahead on the level of investment not only as far as we can bear politically but even further. Just to send the message that we have learned the lesson of the last decade and that this country is determined to pleasantly surprise and create a better future especially for the new generation.” concluded Mr. Hatzidakis.