“Her limitation tax evasion and securing revenue from those who did not pay until now, will allow us gradually over the four years to reduce the direct taxes. The more success we have on the tax evasion front, the more we will be able to lower taxes. And this does not only concern us, but every EU member state”.

These remarks were made by the Minister of National Economy and Finance Kostis Hatzidakis speaking today at the joint meeting of the Economic Affairs and European Affairs Committees of the Parliament regarding the Medium term Financial-Structural Program 2025-2028, in view of its submission to the European Commission.

Referring to the new fiscal rules that apply throughout the EU, Mr. Hatzidakis emphasized that the most important change is the introduction of the expenditure rule. “This rule allows the implementation of a counter-cyclical policy. In other words, it allows the Greek government and the other governments of the member countries to keep spending stable even in times when the economy is not doing well. If the economy is overperforming we will not be able to exceed the spending limit. But if the economy does not perform, we will not be punished with further restrictive policies but the reserve will be used to deal with the difficulties.”

The minister presented the main axes of the program, noting the following:

–Expenses: Public spending increases by around €3.7 billion in 2025 and 2026 and around €3.2 billion in 2027 and 2028. At the end of the four-year period it will be €13.8 billion higher than this year . “With the main argument being the overperformance of the budget and the economy, we managed to increase this amount by 4 billion compared to the initial proposals of the Commission”, Mr. Hatzidakis emphasized.

–Primary surplus: This year the economy will achieve a surplus of 2.4%, against a target of 2.1%, despite extraordinary spending, which is mainly due to the growth of the economy and the fight against tax evasion. “Due to this primary surplus we managed and convinced the EU that we could further increase spending. Because we have convinced that there are now the capacities and structures to achieve the reduction of the debt at the same time as a reasonable increase in expenses”, he said. He added that the surplus for the entire next four years will be at the level that is formed this year (2.4%), while with the previous fiscal framework the target would have been 4%. “So the new rules make it easier for Greece to achieve its goals.”

–Total deficit: It will remain for the entire period close to 1% or even below it, i.e. well below the 3% limit set by the pact. “This is a household item and sends a message of confidence, at a time when 7 EU countries (including Italy, France and Belgium) are in the process of excessive deficit. Imagine what would happen if Greece entered again, due to a frivolous and populist policy in an excessive deficit process. What would this development remind and what message would the government send to the citizens who undergo sacrifices to house the public finances. We would be indulgently inferior to the circumstances. It is something that we will not allow ourselves, neither we in the Ministry of Finance nor the Prime Minister, to carry out populist policies, the cost of which will be asked to be paid by the Greek citizens, especially the weakest”, underlined K. Hatzidakis. He also reminded that in the last few days Greece, in addition to Italy, has also been borrowing cheaper than France in terms of five-year bonds. “This is something that didn’t happen, it did. It is the result of policies that ensure benefit for taxpayers. Only thanks to the recovery of the investment grade, for what we borrowed in 2024, taxpayers will pay 800 million less over a decade,” he added.

–Debt: It is projected to decrease drastically, by 20 percentage points of GDP from 153.7% in 2024 to 133.4% by 2028, the largest decrease in the EU. And it follows a decrease of 45 points from 2020 to 2023. “In 2028, Greece will not be the country with the highest debt in the EU,” the minister said. He also clarified that the change in the method of recording for the deferred interest from the loans of the second memorandum does not change anything. “The difference is the distribution of the specific fund over time. That is, if the whole of 2032 will be recorded or if it will be spread over a period from 2012 onwards. In either case, the course of debt reduction, nor the sustainability analysis, nor the financial needs of the Greek government, nor the amount of the permitted expenses are affected. There is a relevant provision in the new fiscal rules. After all, this year Greece will proceed with an early repayment of part of the public debt, 7.9 billion from the loans that were taken out during the first period of the memorandum, because we can do it.”

–Development: We will have a continuous increase in GDP, which in nominal terms from 232 billion in 2024 will be formed to 272 billion in 2028. But real GDP will also increase in very positive terms within the context of the Eurozone and the European Union. “We are already second in the EU in the 2nd quarter in growth rate. This is the only way to converge with the EU, after the “knife” of the crisis when we lost a quarter of our income”, pointed out Mr. Hatzidakis.

–Unemployment: Projected to decrease from 18% in 2019 to 10.3-10.4% on average in 2024 and 8.5% in 2028 with conservative forecasts.

–Wages: They will continue to rise : The minimum wage from 650 euros in 2019 and 830 euros which is today, is predicted to be 950 euros in 2027. The average wage from 1,046 euros in 2019 and 1,258 euros at the end of 2023 is predicted to reach in 2027 at 1,500 euros. Already now it is over 1,300 euros.

–Reforms in areas such as demographics, housing, Health with recruitment of permanent medical and nursing staff, upgrading hospitals, control of supplies, upgrading the education system with non-state universities that will bring investment and jobs, strengthening entrepreneurship and spending review so that taxpayers’ money goes further than it does today.

“What we said, that’s what we do. Some others promised more. The citizens chose New Democracy and New Democracy is absolutely committed to its program, as evidenced in the medium-term program. It is a serious, measured program that achieves on the one hand small deficits, reasonable primary surpluses and significant debt reduction. But – because of growth and reduced tax evasion – it also allows us to have promised wage growth, unemployment reduction, national defense spending, support for the welfare state and income growth. We don’t promise miracles. We are not magicians but serious, responsible, efficient and we do what we promised”, concluded Mr. Hatzidakis.