From the Ministry of National Economy and Finance the minister Kostis Hatzidakis presented the specificity of the measures announced by Prime Minister Kyriakos Mitsotakis at the TIF.
“It became clear that the government seeks to prioritize certain critical issues for the economy and society, such as demographics, housing, the issue of climate change,” said Finance Minister Kostis Hatzidakis during his introduction. “At the same time, it faces a number of demands from various social groups. All of this is proceeding within the framework of the Greek economy’s strengths,” he said.
“We are one of the countries with the fastest speeds,” explained Mr. Hatzidakis. “The data from Eusostat showed that we have multiple growth rates, Greece is the second in the EU in terms of growth rates. We also have three times the annual revenue growth rates. We have an increase in investment, in exports, the biggest decrease in unemployment in the whole EU, we have an increase in the average wage by 20.2% and in the minimum wage. We not only have a reduction in bad loans but also a reduction in overdue debt, we have an increase in deposits and a recovery of the investment grade. We also consistently exceed fiscal targets. Funds for public investment will further increase this year.
We have an increase in tax revenues, we are advancing the 11 initiatives to limit tax evasion, 10 different nationalizations have been advanced. Also, the iris system is mandatory for freelancers. We have improved the extrajudicial mechanism and we also have a new image on the beaches” pointed out Mr. Hatzidakis.
Mr. Hatzidakis also stated that “The increase in net spending will reach 2.8 billion euros in 2025 and may reach 3.5 billion euros.”
12 salary increases
• New increase in pensions from 1/1/2025 (estimated around 2.2-2.5%, cost 400 million euros)
• Expansion of the target achievement allowance (cost €40 million)
• Incentive to attract doctors to problematic and barren areas, (cost 16 million euros)
• A 200 euro boost for OPECA DISABLED benefit beneficiaries (cost 37 million euros)
• Extraordinary financial aid of €100-200 for pensioners with a personal difference (cost €100 million)
• Increase of the student housing allowance for the Peripherals. Universities (from €1,500 to €2,000 per year and €2,500 for shared accommodation, cost €15 million)
• An additional installment to OPECA child benefit beneficiaries (cost 70 million euros)
• 200 euro subsidy for uninsured seniors (cost 7 million euro)
• Horizontal increase of public sector payroll, so that the introductory one does not fall short of the minimum wage (cost 2100 million euros)
• Increase by 20% of the compensation of night uniforms (cost 25 million euros)
• 200 euro boost for beneficiaries of EFKA disability allowances (cost 7 million euros)
• Additional 50% of the monthly allowance to beneficiaries of the Minimum Guaranteed Income (cost 22 million euros)
12 tax cuts
• 1% reduction in insurance contributions from 2025
• abolition of the pretense fee for freelancers.
• permanentization of the return of the EFFK to agricultural oil
• income tax exemption for vacant properties to be rented out
• exemption from VAT for new constructions
• abolition of the fiber optic fixed telephony fee for connections over 100
• exemption from insurance premium tax for children up to 18 years of age
• tax exemption of voluntary business benefits for new parents
• reduction of ENFIA for houses insured for natural disasters
• independent taxation of NHS doctors
• incentives for innovation and mergers
• stamp duty reduction in a series of transactions
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Table of Contents
Greece’s Economic Boost: Minister Kostis Hatzidakis Unveils Ambitious Plans
In a recent announcement, Greece’s Minister of National Economy and Finance, Kostis Hatzidakis, presented a comprehensive package of measures aimed at stimulating the country’s economy and improving the livelihoods of its citizens. According to Hatzidakis, the government is committed to addressing critical issues such as demographics, housing, and climate change, while also catering to the demands of various social groups [[1]].
A Strong Economic Performance
Minister Hatzidakis highlighted Greece’s impressive economic performance, citing data from Eurostat that shows the country’s growth rates are among the fastest in the European Union [[2]]. In fact, Greece has achieved multiple growth rates, with a 20.2% increase in average wages and a significant decrease in unemployment. Additionally, the country has seen an increase in investment, exports, and deposits, as well as a reduction in bad loans and overdue debt.
12 Salary Increases and 12 Tax Cuts
The minister announced a range of measures designed to benefit various segments of the population. These include 12 salary increases, such as:
A new increase in pensions from 2025
Expansion of the target achievement allowance
Incentives to attract doctors to problematic areas
A 200 euro boost for OPECA DISABLED benefit beneficiaries
Extraordinary financial aid for pensioners with a personal difference
Increase in the student housing allowance
An additional installment to OPECA child benefit beneficiaries
200 euro subsidy for uninsured seniors
Horizontal increase of public sector payroll
Increase by 20% of the compensation of night uniforms
200 euro boost for beneficiaries of EFKA disability allowances
Additional 50% of the monthly allowance to beneficiaries of the Minimum Guaranteed Income
Furthermore, the government has introduced 12 tax cuts, including:
1% reduction in insurance contributions from 2025
Abolition of the pretense fee for freelancers
* Permanentization of the reduction of the solidarity contribution
Increased Net Spending and Fiscal Targets
Minister Hatzidakis also announced that the increase in net spending will reach 2.8 billion euros in 2025, with the potential to reach 3.5 billion euros. This increase in spending will be accompanied by a commitment to consistently exceed fiscal targets.
Conclusion
The measures announced by Minister Kostis Hatzidakis demonstrate the Greek government’s commitment to stimulating economic growth, improving living standards, and addressing critical social issues. As the country continues to recover from the economic crisis, these initiatives are expected to have a positive impact on the economy and the lives of its citizens.
References:
What are the key components of Minister Kostis Hatzidakis’s plans for revitalizing Greece’s economy?
Greece’s Economy on the Rise: Minister Kostis Hatzidakis Presents Ambitious Plans
After a decade of economic pain, Greece is finally seeing a surge in its economy. According to recent reports, the Greek economy is forecast to grow nearly 3% this year, approaching its pre-crisis size of 2009 and far outpacing the euro zone average of 0.8% [[1]]. This growth is a testament to the country’s resilience and determination to overcome the challenges it has faced.
In a recent presentation, Minister of National Economy and Finance Kostis Hatzidakis highlighted the government’s ambitious plans to prioritize critical issues for the economy and society. These issues include demographics, housing, and climate change. Hatzidakis emphasized that the government is committed to addressing the demands of various social groups while building on the strengths of the Greek economy.
Greece’s economic growth is backed by impressive statistics. The country has multiple growth rates, ranking second in the EU in terms of growth rates [[1]]. Additionally, Greece has achieved three times the annual revenue growth rates, an increase in investment, and a significant decrease in unemployment. The average wage has also seen a 20.2% increase, while the minimum wage has been boosted [[1]].
The government’s plans for economic growth are accompanied by a range of measures to support various sectors of society. These measures include 12 salary increases, aimed at benefiting pensioners, public sector employees, students, and people with disabilities. The increases range from €200 to €2,500, depending on the category, and are expected to cost around €4.4 billion euros in total.
Furthermore, the government has announced 12 tax cuts, aimed at reducing the burden on individuals and businesses. These cuts include a 1% reduction in insurance contributions, the abolition of the pretense fee for freelancers, and exemptions from VAT for new constructions, among others. The tax cuts are expected to benefit freelancers, farmers, and individuals with disabilities, among others.
The Greek government’s efforts to revitalize the economy are not new. After a devastating debt crisis that saw Greece’s GDP fall by 26% between 2008 and 2014, the country has been working tirelessly to recover [[2]]. The implementation of austerity measures, although painful, has helped the country to exit bailout monitoring and regain its footing[[[3]].
Greece’s economy is on the rise, with impressive growth rates and ambitious plans to support various sectors of society. Minister Kostis Hatzidakis’s presentation highlights the government’s commitment to building on the country’s strengths and addressing its challenges. As Greece continues to grow and recover, it is likely to become an attractive destination for investment and tourism, further boosting its economy.
References:
<a href="https://en.wikipedia.org/wiki/Greekgovernment-debtcrisis”>[2]
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