“In recent years, the myth has been cultivated in Greece that a complete deindustrialization has allegedly occurred, every production process has stopped and Greece has become exclusively a service economy. In fact the evidence shows that in recent years there has been a very significant progress, I would say a renaissance of manufacturing and industry.”

These remarks were made by the Minister of National Economy and Finance, Kostis Hatzidakis, during his speech at the 8th Annual Economic Conference of the Hellenic Businessmen’s Association, in the context of which he quoted the relevant official statistics: “According to ELSTAT, the industry has increased the participation of GDP from 12% in 2019 to 13.8% in 2023. At the same time, again with based on data from ELSTAT, in 2023, compared to 2019, we had an increase in the number of workers in industry of more than 7%. Whereas, based on data from the European Central Bank, the increase in manufacturing productivity between 2019 and 2023 reached 20.4%.

At the same time investment has increased by 53% since 2019, the biggest increase across the EU, our exports have doubled between 2008 and 2023 to €98 billion. euros while in the period 2020-2022 the share of goods in exports significantly exceeded the corresponding share of services and in 2023 the ratio was approximately 50-50, (while previously the ratio was 2 to 3). At the same time, the share of high-tech exports in total goods exports has increased.

“It may not have been a revolution, but the direction is positive. And anyway, there was no deindustrialization”, noted Mr. Hatzidakis and added: “Thus, those who claim that Greece “does not produce even a pin” are refuted.” “On the contrary, the increase in investments and exports is proof that our production model is gradually diversifying. And of course it is connected both to growth rates that are multiple times the European average and to the very significant reduction in unemployment. The progress is the result of the efforts made by the companies themselves, the workers, but also the economic policy that combines fiscal seriousness with a pro-investment approach. If we don’t have positive developments in the economy, how have half a million new jobs been created?” he wondered.

Mr. Hatzidakis made special reference to energy, underlining the progress made in the green transition which will allow the country to turn from an importer to an exporter of energy. “This is a factor of optimism for the country, for its competitiveness and prospects, not only with environmental but also with economic importance,” he stressed. “However, a substantial European policy is also needed, especially in the field of networks, as the Draghi report rightly points out.”

Presenting the next steps included in the planning, the minister mentioned, among other things:

-In the new incentive framework for mergers, acquisitions, research and innovation, included in the tax bill which is under consultation. As he said, the new framework will be the most competitive framework for these issues across the EU. “Because before we adopted it we saw what applies in the other EU countries and tried to go up several steps,” he said.

-In the continuation of the effort for a more robust banking system that will provide liquidity to the market, with reinforcement of the 5th pillar, intensity of competition and expansion of the “Hercules” program that will lead to a reduction of “red” loans at the European level.

-On training issues, noting that with the policies implemented during the period when he was Minister of Labour, emphasis was placed on skilling and reskilling in modern green and digital skills. “A modern economic policy cannot ignore the need to constantly upgrade the skills of the workforce. That is why as a government we have put forward training programs in modern skills, from which more than 700,000 workers and unemployed will have benefited in total in the coming years. The effort must be continued and intensified, with an emphasis on a more transparent and efficient system of training certification and encouraging intra-company training which companies should view more warmly,” he added.

-To continue reducing taxes. “The government, he stressed, examines every proposal, as well as those submitted by the Hellenic Businessmen’s Association”, he said. “I don’t want to say that we have come to an end and get false news out, I am saying that the further reduction of taxes is in the spirit of the government because we want to support competitiveness. But we measure every time before we move forward, so as not to jeopardize the goal of fiscal stability,” underlined Mr. Hatzidakis. And he added:

“Since 2019 we have reduced over 60 taxes: Corporate tax from 28% to 22%, capital accumulation tax, dividend tax, ENFIA, input rate on the lower income scale. Indirect taxes were also reduced, particularly in transport. It is no coincidence that Greece, according to Eurostat, had the largest tax reduction in terms of GDP among EU countries, from 42.8% in 2022 to 40.7% in 2023. And the new tax bill includes 12 new tax cuts for 2025. And we’re not stopping there. Because our model combines growth with curbing tax evasion. So with lower taxes we have more revenue. It is, he concluded, a policy that also sends a message of justice, especially for law-abiding citizens, but it certainly also has a sign of development.”