“We respond to existing social problems neither with complacency nor with demagoguery, but with financially responsible and truly socially sensitive solutions. This is not a time for populism and magic recipes. It is the season of seriousness, responsibility, moderation. Which for the New Democracy are also elements of political identity”.

This was pointed out by the Minister of National Economy and Finance Kostis Hatzidakis during his speech to the Plenary of the Parliament today, the last day of discussion of the Budget for 2025.

Mr. Hatzidakis described what would happen in the country if some of the proposals formulated by opposition parties in the five-day debate on the Budget. Suggestions like:

– Not to repay the public debt because it is burdensome and odious. “The non-payment of the public debt leads directly to the cliff. It leads to bankruptcy. It is not a progressive proposition. It is a nationally irresponsible proposal. As long as this government is in power, you will not see such moves,” the minister stressed.

– To circumvent the new European fiscal rules on primary surpluses. “The primary surpluses we achieve are a support for the economy against internationally uncertain times. In the Eurozone and the whole world. SYRIZA, which remembered to make this criticism, had achieved as a government primary surpluses without growth. While we combine surpluses, with fiscal stability, and growth rates, much higher than the European average”, he noted.

– To proceed with a reduction of defense expenditures and an increase of ENFIA so that in this way a more substantial, social policy can be exercised. “This would not be a solution, but a recipe for a return to crisis. And it is something that, after a long period of deep crisis, we Greeks should never allow to happen again”, emphasized Mr. Hatzidakis.

Referring to the opinions that the positive things achieved in the country in recent years were almost automatic, he said that this position ignores the huge changes that have been made (72 tax reductions, successive reductions in social security contributions, modern labor legislation, simplification of investment environment), the extremely difficult situation (wars, global inflationary crisis, health crises, energy prices, increased interest rates) “and above all it is unfair to the Greek women and Greek businessmen and workers. Who in recent years have made sacrifices and serious efforts, so that our country can move forward”.

The minister noted, however, that during the discussion three existing problems were highlighted: the international inflationary crisis, the housing problem and the banking issue and he presented the government’s policy for them, pointing out the following:

1. Inflation. “Built-in inflation is putting pressure on households, and even more so on the weakest. We are the first to recognize it and never forget what every household has to manage every day. The labeling is correct, the attempt to present the problem as exclusively Greek is wrong, as it has been preoccupying the whole planet for at least three years”, said Mr. Hatzidakis. And he recalled the successive interventions of the government which had the result that Greece all this time moved around the European average: Basket of basic goods, ceiling on the profit margin for basic goods, ban on discounts on products that were overpriced, thickening of controls by the Commission of Competition and DIMEA, imposition of severe fines. And of course increases in pensions and wages, especially the minimum wage.
“The problem is on the decline and estimates show that inflation is being limited internationally. The wage increases, both in 2025 as shown in the Budget, and in the following years, will make the daily life of households relatively better. The difficult part of the crisis is behind us. And in any case, this is not dealt with internationally with magic recipes, but with solid and responsible policies”, he said.

2. Housing. The problem is indeed acute. In the last decade we had a drop in prices and rents, to the benefit of tenants and to the detriment of owners, while now the opposite is happening, noted the minister and added: “For many years, our country did not have a housing policy , which restarted from 2022, with different pillars: the “My Home 1” program, and from the beginning of 2025 “My Home 2”, through which 30,000 young people and young couples will get their own home on favorable terms. The “Renovate – Rent” program. The Social Compensation programs that start. Housing benefits for tens of thousands of economically weaker. Interventions for short-term rental and the Golden Visa. Incentives for owners to make their homes available for long-term rentals. And the initiatives announced for the contribution of the banks in dealing with the issue”.

3. Banking. “The remarks heard have some aspects of law. But again, there was a demagogic and extreme approach”, emphasized Mr. Hatzidakis. “What the government seeks is to have on the one hand a healthy banking system and on the other hand a banking system that will actually work in favor of the economy and society. Without making citizens feel excluded from it or even more its victims. The collapse of the banking system in Greece was accompanied by successive recapitalizations, which Greek citizens were asked to pay out of their own pockets. Populism is not a solution here either, but worsens the problem.”

The minister recalled the interventions implemented by the government to intensify competition and protect consumers: granting loans from non-banking institutions, supporting the fifth banking pillar, mandatory IRIS, legislative intervention to reduce commissions on small transactions by 50% , acceleration of the out-of-court mechanism, tax-free placements in Treasury bonds, activation of the Development Bank. And an additional package of measures, which combines the strengthening of competition, the support of the liquidity of small and medium-sized enterprises, the fairer commissions and the more active contribution of the banks in solving the housing problem.

“There are still open wounds from the last decade, this does not mean, however, that we will join the leveling and nullification of the opposition”, underlined Mr. Hatzidakis. He recalled the successes and progress of the last 5.5 years (faster growth at up to twice the rate of the EU, the largest reduction in unemployment and public debt in the EU, the largest increase in investment and exports), which are not only successes of the government, but of all Greeks. “It is sad, at a time when the collective national effort is recognized internationally, changing the image and prospects of our country, that the opposition constantly projects its evil self. And to get rid of her stress in case Greek men and women feel a trace of pride, that Greece has finally pulled its head out of the water”, noted the minister and concluded:

“We are moving forward in 2025 with 4 priorities: fiscal prudence and seriousness, reducing taxes while reducing tax evasion, supporting development and extroversion, strengthening social policy. It is our duty, on the one hand, to avoid complacency, triumphalism and the feeling that there really are no problems to deal with. And on the other hand, let’s close our ears to populism, which is the national cancer, and stay true to the path of modern and effective changes. This battle is for Greece and together we win it every day”.