The new production model must have the pharmaceutical industry as its protagonist, emphasized the Minister of Development, Takis Theodorikakosspeaking at the 4th “It’s all about health 2024” Conference.

As the minister said, the pharmaceutical industry, through research and innovation, is becoming more competitive, more exporting, more dynamic as a sector of the Greek economy, offering thousands of new jobs.

He also mentioned that the Ministry of Development with European Investment Bank is creating a new financial instrument for lending with a 300 million euro guarantee and a leverage of 1.5 billion euro at much lower interest rates to facilitate the financing of investments. In addition, in collaboration with other ministries, a second wave of de-bureaucratization of economic and industrial activity is underway.

Among other things, the minister, speaking about the new production model, said: “I go to too many businesses and too many entrepreneurs-industrialists ask me the issue that they can’t find people to work. We are in a country that was taken over by the N.D. government with 18% unemployment and currently it is at 9.3%. There are many businesses in the country that cannot find the people they need. So a new productive model means serious transformations in the education system, in the training system. We are in close cooperation with the Ministry of Labor and the Association of Industrialists in order to jointly carry out these programs and ensure the needs of the market. But I bring it as a typical example for the Greece of today and tomorrow, which must and must be more productive in order to withstand the difficulties and competitions of the time and the great changes brought by geostrategic fluidity. And we must not forget the two wars in the wider neighborhood and the political change in the USA, to which Europe must adapt and evaluate yesterday.”

“The investment clawback is at 200 million euros, we will continue it in the coming years”

Referring to the incentives that the Greek State will give to strengthen investments in the pharmaceutical industry, he underlined: “A new production model must have the pharmaceutical industry as its protagonist. Through research and innovation, it becomes more competitive, more exportable, more dynamic as a branch of the Greek economy. It is part of an organized plan that we have announced and we are committed to making it a reality.

The investment clawback is at 200 million euros, we will continue it in the coming years. It is a discussion we have had with the Ministry of Finance, because it is also involved, as a matter of fact with very strict conditions of a new Medium-Term Fiscal Program.

The strategic investments supported by the Ministry of Development in the pharmaceutical sector of the order of 400 million euros are already included.”

Iconic investments

With regard to the new incentives, he characteristically stated the following: “First, we announced and will legislate within the next quarter that we are maintaining the institution of flagship investments, which until now have only been financed through the RRF. But this has a specific time horizon. So we maintain the institution of flagship investments for large, serious, innovative, green investments that without any doubt can be included investments of the pharmaceutical industry.

Second, we are creating two new development regimes, which will evolve in the winter and spring of 2025 and which can also include investment from the pharmaceutical industry. They are big investments with tax breaks of 150 million euros a year, so 300 million euros for the next two years. We also announced a separate regime only for the border regions, from Epirus and Macedonia, to Thrace and Evros as a whole, with investments that we will support with both financial aid and direct financing.

In addition, I want to highlight the new package for all companies in the field of research, with an overcommitment of tax expenditures of up to 250%, when the pharmaceutical industry cooperates with startup companies and research centers for research and innovation expenditures. I believe it is a very important motivation to further expand this extremely decisive scientific and technocratic work that feeds the results of the pharmaceutical industry and research.”

Also, as the minister noted, the Ministry of Development with the European Investment Bank is creating a new financial instrument for lending with a 300 million euro guarantee and a leverage of 1.5 billion euros with interest rates much lower than the interest rates of Greek banks and more general terms loans better than those offered by the commercial market.

“We are doing it because we want to facilitate the financing of investments and also the Ministry of Development in collaboration with other ministries is working for a second wave of bureaucratization of economic and industrial activity. The first five years saw many important changes, but there is still bureaucratic fat that needs to be cut immediately to facilitate investment. Many times we have seen that it acts as a deterrent and it is a factor that we have to deal with. The other factor is related to justice and a great effort is being made by the relevant ministry.”

Europe’s development model and the goal of the Greek economy in the next 5 years

When asked about the goal of our economy in the next five years and within Europe’s development model, the minister answered as follows: “…Many times I feel that the rest of humanity treats Europe as a state that competes with it. We in Europe see ourselves as 27 separate entities whose Ministers and Heads of State meet in councils every few months. And from behind a bureaucracy determines many things, which sometimes work and sometimes create problems.

Europe is our home and we must, with great determination and courage, make things happen. We have progressed these 5.5 years with political stability thanks to the Government’s initiatives together with society, the business community, and the workers. But you see that at this time the two biggest countries in Europe have their own issues. The governing coalition in Germany is coming to an end, the country will be heading to elections, and hopefully these will lead to political stability and a government that will help to live up to its critical role as the largest country in the European Union. And France, in addition to its political liquidity, is one of the last countries to have a trade deficit.

Problems are mentioned not to sound pessimistic, but to solve them. The Greek Prime Minister plays a very important role and I am sure he will be even more powerful.

Within this environment for the Greek economy, we want a more important role for industry to be recorded. So that it leaves a stronger mark on both GDP and employment and reduces the trade deficit, which as a percentage of GDP is where it was at the beginning of the 21st century despite our export growth. It is a great challenge and a national necessity for entrepreneurship and all of society.

To the citizen who might say that he does not care about the trade deficit, I want to say the following. When you consume more than you export, then your income will become less. If you export more than you consume, then income grows as taxes keep falling. And the issue is the best standard of living for every citizen throughout the country, without exceptions”.