The data from Eurostat and the European Commission, the reward statements and the estimates of the head of the Eurogroup and the OECD, the rating agencies, on the figures of the economy, were “put on the table” for the discussion of the 2024 budget, the Minister of National Economy and Finance Kostis Hatzidakis. These recorded admissions were quoted by Mr. Hatzidakis, against, as he said, the data of… “SYRIZAstat” which give the image that Greece in recent years is an international example of disaster.

“We will pursue our successful policy mix, accelerating the necessary structural changes and reforms. We will move forward by combining fiscal stability and seriousness, development policies, social cohesion policy with a footprint“, said Mr. Hatzidakis and added that the ministry will do its job in the best way, as a patriotic duty, so that Greece rises higher.

“At the first meeting of the Eurogroup, which I attended, the president, Pascal Donahue, spoke about the policies of the Mitsotakis government, as an example of success in Europe and as a pleasant surprise in recent years. Later, from August onwards, I see, I imagine you too, one after another the rating agencies, upgrading Greece and giving it the credit rating. I also heard, at the end of October, Mrs. Lagarde, of the ECB, who came here and spoke publicly, with the most positive words, about the government’s economic policy as well as our policy towards the banking system. I read in the Economist, a month or two ago, a special tribute to the policy followed by the EU states, they award the so-called Economist medals, and the article was extremely positive, both about our policy, against inflation, and as towards the green transition. A few days ago, Matias Korman, the head of the OECD, spoke about the bankruptcy framework that exists in Greece, the new one adopted under Christos Staikouras, which SYRIZA had even criticized in the Parliament and said that it is exemplary, for the OECD standards. And also, at the last meeting last week of the Eurogroup, the Greek budget, which is so heavily criticized by the opposition, was the budget that, along with six other European countries, passed without notice, the Eurogroup considering it a budget that follows the basic guidelines of the Council“, said the Minister of National Economy and Finance and added: “So this is what I’ve seen. I will not comment further on the opposition because it was properly commented on by the Greek people, during the last elections, and my comments are irrelevant»

Mr. Hatzidakis referred to the developments that caused the positive comments of EU institutional actors and rating agencies.

On growth, the figures presented by Mr. Hatzidakis, he said, show that Greece now has the third highest growth rate in the eurozone, much higher than the eurozone average.

In investments, Mr. Hatzidakis presented the data of the European Commission showing that in 2023 Greece will be third in the entire EU in terms of investment growth. But also in relation to foreign direct investments, Mr. Hatzidakis presented data showing that Greece has a 20-year record.

In exports, Greece also reached an all-time high, accounting for 49% of GDP. “The commission predicts that Greece will be number one in the growth of exports in 2023 and number two, after Slovenia, in 2024,” said the Minister of National Economy and Finance.

In the public debt, which there is no doubt that Greece starts from very high, as Mr. Hatzidakis said, the country has the fastest de-escalation, in all of Europe and all international organizations predict that this will continue with the economic policy mix that the government follows.

In inflation, which “no one doubts is a problem”, the Minister of Finance submitted data from the European Commission, regarding the harmonized index of consumer prices, which show that Greece has lower inflation in 2023 as well and this forecast is also for 2024. than the eurozone average.

Regarding unemployment, which “according to the opposition, the government is like the pound that burns Sparta”, the Minister of Finance submitted data from ELSTAT, from 2009, which show that “this relentless government” reduced the number of unemployed and increased the number of employees.

In relation to the evolution of wages, the minister presented figures on the minimum wage which show that without taking purchasing power into account, Greece is in 10th place out of the 22 EU countries that have the minimum wage. If purchasing power is not taken into account, Greece reaches 12th place from 18th place.

Revenue

“Indeed, the policy we have implemented has led to a 9.1% increase in revenues this year, without an increase in taxes,” said Kostis Hatzidakis and underlined that this happened because:

  • first, private consumption increased
  • secondly, it is due to the increase in tourism receipts
  • thirdly, in the increase of wages and pensions, because there are deductions and thus greater revenues for the public treasury
  • is due to inflationary effects. “We are not hiding anything. As a result of the global energy crisis, but with a much smaller contribution in 2023 than in 2022, because inflation was limited”, as Mr. Hatzidakis said
  • it is also due to the extensive use of credit cards and the increase in electronic transactions in general.

Mr. Hatzidakis reserved two “postscripts” for the opposition, according to his statement, in relation to the current situation. He referred to private debt, presented data from Eurostat that show that Greece, in relation to the EU average, is far from the average and indeed with a very large de-escalation. He also submitted data, from the Bank of Greece, on the evolution of non-performing loans, which shows that “in 2023 they will be at 7.9%, from 48% in 2018”. In relation to the cost of recapitalization of the banks, Mr. Hatzidakis, submitted data showing that the cost is 30.9 billion and the benefit for the public is 33.4 billion euros.

The basic sizes

Referring to the government’s priorities and budget forecasts, the Minister of National Economy and Finance said that the 2024 budget foresees a growth rate of 2.9%, an increase in GDP from 222.8 billion to 233 billion, the harmonized index of consumer prices is estimated to it will go from 4.1% to 2.6%, investments will increase by 15.1%, unemployment will decrease by 0.1%. “These forecasts are very, very moderate”, said Mr. Hatzidakis and called on the opposition to take these forecasts… in cash.

The priorities

The government’s priorities, said the Minister of National Economy and Finance, are more revenue without increasing taxes, tackling tax evasion, recovery from the recent natural disasters, new investment resources of 12 billion through the PDE and the Recovery Fund and an increase in spending on health and education. The minister referred to the permanent income support measures amounting to 1.6 billion euros, from next January (increases in salaries, pensions, increase in the tax-free allowance, maternity allowance for self-employed professionals and farmers, reduction of the ENFIA for houses insured for natural disasters , making permanent the exemption of former EKAS beneficiaries from pharmaceutical expenses, lifting the three-year freeze for employees and abolishing the 30% reduction in pensions for employed pensioners). “They are measures with a social color and measures of permanent income support”, said Mr. Hatzidakis and he also referred to the tax reductions, on a permanent basis, from 2024: permanence of the reduced VAT rate in transport, in services related to hygiene, culture, 10% reduction in ENFIA for homes insured against earthquake, fire and flood, increase in tax-free allowance for families with children, reduction in stock exchange tax and bond tax, reduction in capital accumulation tax, abolition of the 30% withholding tax on working pensioners and a 50% reduction in the pretense fee.

Mr. Hatzidakis pointed out that the budget foresees an increase in spending on health, in hospitals and an increase in the budget of the Ministry of Education. He also submitted data that education expenditures increased by 15.7% from 2019 and health expenditures increased by 46.5%, that subsidies to hospitals and primary care units increased by 97.9%, that subsidies to insurance companies increased funds by 16.4%, an increase for DYPA by 40%, an increase in EOPYY by 26.3% and an increase in OPECA. “Is this social policy or is it not? There is no doubt that the government is implementing policy which is producing results. It produces results for the economy, for citizens, for the most vulnerable. We will pursue this policy mix by accelerating the necessary structural changes and reforms. We will move forward by combining fiscal stability and seriousness, development policies, social cohesion policy with a footprint”, said Mr. Hatzidakis and added that the ministry will do its job in the best way, as a patriotic duty, so that Greece will rise higher.