“The resolutions we are adopting are in the right direction, but they lack ambition. The European Union, given the global scene, must move faster, more decisively, building on what it has already achieved”.

This was noted by the Minister of National Economy and Finance Kostis Hatzidakis in the debate held in Brussels regarding the Eurogroup Resolution on the competitiveness of the European economy. “If we exclude energy, in the rest of the points we move with the logic of the least common denominator. The direction is right, but this is not enough,” added the Greek Minister.

The Resolution adopted by the Ministers focuses on 5 points:

  1. The strengthening of innovation and productivity, by stimulating investments in Research and Development, supporting start-ups and developing human capital.
  2. Reducing the cost of energy and strengthening the energy resilience of the EU, with better coordination of the energy policies of the Member States and promoting the interconnection of networks.
  3. Strengthening Europe’s economic security in an international environment in which trade competition is intensifying.
  4. The deepening of the Common Market, as a condition for maintaining the well-being of European citizens.
  5. Coordinating investment strategies to find the necessary resources to finance EU priorities.

In his intervention, Mr. Hatzidakis pointed out that the Resolution identifies the main challenges and sets the right goals, however it could be more ambitious in terms of the strategies and measures it proposes. The Greek Minister particularly focused on the great advantages of the EU’s main trading partners (centralized decision-making process, very large domestic markets, integrated financial systems), underlining that European states, even the most powerful, cannot successfully compete with them acting individually. “At the heart of this debate, as in others, is a fundamental question: Do we see the European economy primarily as the sum of national economies, or as an integrated single economy? I understand the political dimension of this discussion. However, this does not change the financial data”, emphasized Mr. Hatzidakis.

Ministers were also briefed by the Chairs of the Single Supervisory Mechanism (SSM) and the Single Resolution Board (SRB) on developments in the European banking system. In his intervention, Mr. Hatzidakis acknowledged that the framework of banking integration has taken steps forward, pointing out at the same time that more progress should be made regarding its third pillar, the Pan-European Deposit Guarantee. “We rightly discuss at length the need to deepen the Capital Markets Union. But in order to make full use of the possibilities that the Capital Markets Union gives us, the Banking Union will have to move forward as well. The completion of the Banking Union must remain a political priority and we must work in this direction for the benefit of the European economy and households”, the Greek Minister concluded.

A political agreement was reached in ECOFIN on the legislative package for VAT in the digital age. This package aims to tackle VAT fraud, support businesses and promote digitalisation so that Member States tackle VAT evasion.

The Ministers also discussed the tax aspects of Draghi’s report on the competitiveness of the European economy, focusing on the issues of providing tax incentives and simplifying tax procedures. Mr. Hatzidakis presented the recent initiatives of the Greek government in these areas (codification of tax legislation and digitization of AADE procedures). He also noted the importance of tax incentives for spending on research and technology, innovation, green economy, energy and digitization, again referring to relevant initiatives of the Greek government. He noted the need for further coordination at the European level.

On the sidelines of the meetings, Mr. Hatzidakis had a meeting with the head of the ESM Pierre Gramegna, with whom they discussed issues of mutual interest, noting the progress that has been achieved on all relevant issues.