Theodorikakos: The goal is a new production model with balanced growth throughout the country

In the presentation of the 2023 Annual Report “Competition and Small Business” of the Small Business Institute of G.S.E.V.E.E. attended and spoke, today 10 July 2024, the Minister of Development, Takis Theodorikakos.

The following is the full speech of Mr. Theodorikakos:

I want to thank you for the invitation you were kind enough to extend to me, to attend the presentation of the study you have done on the course of the Greek economy and the state of the country’s small and medium enterprises.

It is a special pleasure and honor for me to represent the Prime Minister of the country at this event. Having in front of me people who are the backbone of our economic activity and society.

I believe and look forward to our close, creative and sincere cooperation. I want you to feel the Minister of Development of the country next to you and I want to feel that you will also be supporters and pioneers in the new effort.

Reliable, essential, demanding, useful and necessary interlocutors and partners, because we are connected by the common goal of supporting entrepreneurship, supporting and strengthening jobs, developing the Greek economy, and increasing the wealth produced.

I believe that together we want and must fight the battle of reducing the social inequalities that mark Greece in the 21st century. The battle of supporting the Greek family. Why, we should not forget the problem of low fertility. Dealing with demographics requires an attitude of responsibility from everyone today.

I read your report very carefully.

It seems, therefore, that a positive outlook has been created for the Greek economy

• In 2023, GDP grew by 2% at constant prices, surpassing the 2019 level.
• Household consumer spending increased by 1.78% in 2023.
• A positive sign is recorded in net investments, after 11 years of continuous disinvestment.

That’s the good news.

You know that the Government has supported Greek small and medium-sized businesses in previous years, especially during the years of the corona virus. 50 billion euros were channeled into home and business funds.

Employment positions were supported.

We have gone through four minimum wage increases since 2019 when the ND took over.

The government reduced 50 taxes.

The first was the corporate tax which went to 22%. ENFIA followed, the reduction of income tax rates with the introductory rate going down to 9% from 22%. The solidarity levy which was 1.5 billion euros was zeroed out. Insurance contributions decreased by 4.4% and will follow by one more unit.

The government secured resources of 36 billion in grants and loans.

I also want to underline that a series of actions related to small and medium entrepreneurship are underway in the Ministry of Development.

You know that a short time ago I assumed the duties of the Minister of Development of the country. I am used to saying and I want to repeat it today, that this Ministry is the Ministry of Development and not the Ministry of Accuracy.

And I want to explain to you what I mean.

Our country needs a new production model. A new production model which the Ministry of Development is called upon to co-shape and contribute to its implementation.

A key feature of a modern productive development model for Greece is the reconstruction of Greek industry, the implementation of a new National Strategy for Greek industry.

I believe that it is also a prerequisite for the security of our country, the sustainability of economic development regardless of adverse circumstances and extraordinary events, which may affect other sectors of the economy in a much more intense way.

• Modern, competitive industry, utilizing innovation, applied research, multiplying our exports.
• Industry with growth throughout the Greek territory.

Because our goal is for economic growth to be not only sustainable, but also balanced throughout the country and at the same time lead to many thousands of new well-paid jobs.

For the next generations of Greeks and certainly the brain drain generation that emigrated in the previous 15 years and especially the difficult years of the great debt crisis that Greece went through abroad.

An industry that will support and be supported and interact positively with the SME ecosystem and harness the ingenuity and capability of professionals and SMEs.

Which will feed them and be fed by them, buying value added services. A chain of security and development for every Greek woman and man.

We work for
• Raw materials and energy at an affordable price.
• Transparency and facilitation in the financing of SMEs.
• For the digital and green transition.
• Access to the banking system.
• Investment incentives.
• Way out for insurance and employment issues.

We want SMEs that will flourish and not bend under the weight of oligopolies, SMEs protected from international turmoil.

In a society of cohesion and solidarity.

We support medium-sized businesses, because they are the vast majority of businesses.

Green and digital transformation is a strategic direction for our Government. Only within the framework of the “Competitiveness” program for the period 2021-2027, the “Digital Transformation of SMEs” has been activated, with a budget of 300 million euros, and the “Green Transition of SMEs” with a budget of 700 million euros.

And another 300 million euros for the Research – Innovation program.

A very important initiative is the “National Observatory for Small and Medium Enterprises”, as it is a tool that provides us with the possibility to design our policy for small and medium enterprises with what we call “evidence-based policy”.

We are working to simplify the licensing of businesses and improve their control, as well as the digitization of procedures to save costs and time, always with the aim of defending the public interest and ensuring healthy competition. Over 2,500 activity categories have been simplified to date.

High added value for SMEs is also the state aid action “Smart Manufacturing”, for which the interest was particularly high, since we received 507 investment plans. The action will support with more than EUR 85 million micro, small and medium-sized enterprises to implement investments aimed at, among others, the digitization of production lines, the use of robotics, automation and the application of artificial intelligence technologies, among others others.

Among the interventions, it is worth focusing on the funding of 65 million euros for the creation of new green and smart industrial parks and the upgrading of existing parks, which will further strengthen small and medium-sized enterprises as they enhance economies of scale, promote collaboration and reduce costs due to common infrastructure.

Of particular importance is the “National Strategy for Sustainable Financing”, which concerns the planning and adoption of tools for the promotion of green investments, with the aim of combating the effects of climate change, as well as the promotion of green technologies. In this context, actions will be immediately implemented to inform companies about ESG criteria.

But we also deal with extraordinary crises, such as that of the bad weather Daniel in Thessaly, supporting businesses in some of the affected areas with more than 8 million.

The main goal of all our actions and planning is to support SMEs at all times, so that they not only survive but also develop and become more competitive, resilient and sustainable.

We are called – and we do – to work hard and effectively to support with actions the development of Greek entrepreneurship and Greek industry, the backbone of which are SMEs.

Together with the Greek Chamber of Commerce, we have created an information system with specialized information that enables direct access to the financial tools available to businesses, while facilitating the work of economists-accountants who provide consulting activity.

It also provides information on any regulation or action (borrower protection, consolidation, state aid action, etc.) that the interested party finds that potentially concerns him, he can do a quick and simple but complete check of his possibility of belonging to it.

Certainly, part of the activities of the Ministry of Development concerns dealing with parts of the cost of living for the average Greek family and citizens. From the first day that I assumed the responsible duties of the Minister of Development, I have described that I believe in a triptych, which can contribute to the de-escalation of prices.

• The first basic condition is the operation of competition. It is an absolute priority to strengthen the action of the Competition Commission, which we support with all our strength. Whatever is requested in terms of personnel and infrastructure will be provided.
• The second condition is the informed consumer, who must use his power and knowledge, and for this we are upgrading the e-katanalotis platform.
• The third is the social responsibility of healthy entrepreneurship, which must respond to the need for social cohesion and the dignity of every consumer and every citizen who trusts these companies for the services and products he needs for his livelihood and daily life.

We will stick to this policy, as inflation in food and staples over the past few years has been and is a very serious problem fueled by global economic imbalances.

From the coronavirus pandemic, from the two wars that unfortunately continue in our wider region, in Ukraine and Gaza. And the explosion of energy costs. with all the negative consequences in terms of inflation worldwide and in Europe and of course also in our country.

We are constantly monitoring the situation. We’re not dogmatic and we’re going to do whatever we have to do, whatever we can to de-escalate prices and make competition really work, because we’re not dogmatic.

We believe in joining forces and working together, but at the same time we will do everything we can to compel those who may think differently to apply the laws. That’s why we increased the maximum fines.