From the messages sent by the Prime Minister to the Council of Ministers, the interview of the Minister of State Akis Skertsou on “Real FM” began.
Specifically, “what the prime minister pointed out is that we must try every day to put ourselves in the shoes of the citizens and to feel and empathize with their daily lives. That is, to get out of our glass offices, to get closer to society and to understand the problems of everyday life. This is what politics is all about. Our job is not to admire ourselves for the achievements of the economy, which are many and important, but to see how these are transferred as an experience in people’s daily lives.
And he continued: “We have to manage an economy that suffered from a more than ten-year debt crisis”, which is “trying to restructure, to change its production model, to offer more opportunities for private and public investment, for better incomes, better wages and pensions in the public and private sectors, and to grow at a faster pace than the rest of Europe”. At the same time, we must “solve many and long-term problems that the Greek economy has, and in the field of competition”, with the ultimate goal, “better prices for consumers”.
The conclusion of the Minister of State is that “Greece has managed to stand on its own two feet in the last five years in extremely adverse conditions”. He asked, “to continue on the same path of fiscal responsibility and dynamic growth, but to primarily support vulnerable incomes and fight a great battle to keep inflationary pressures at levels that will be lower than the increases we are giving”.
In particular, he observed that “in 5.5 years the increases are recorded in the region of 25% to 28%, cumulative inflation is from 15% to 16%, so something remains in the pocket. However, it is not enough, we fight every day”, he assured.
After all, he added, “there is no other government in the past that has messed with the refineries, with the big energy providers. We are not adversarial, but when we see that there are so-called skyrocketing profits,” then the government steps in and “redistributes that skyrocketing profitability back to consumers to support incomes.”
Another message sent by Mr. Schertsos, was that “we are on the side of vulnerable fellow citizens and we are trying to ensure that the prosperity that is noted at the macro-economic level creates better incomes, smaller inequalities”.
The budget, in fact, “includes 12 salary increases for 2025 and 12 tax reductions that come to be added to an additional 60 tax reductions, which have been voted and implemented in the previous four years”. Consequently, he continued, “we have achieved higher revenues with lower taxes. We note the largest tax reduction in the European Union based on Eurostat data.”
At this point, he also found that “the ratio of direct to indirect taxes is changing, indirect taxes were at 67% in 2019 and are at 62% today, and direct taxes were at 33% of GDP in 2019 and are at 38% ». “The tax base is expanding, there is fairer taxation,” he said, and “the fairer fiscal and economic environment offers security and attracts investment.”
Especially for the proposal to reduce the VAT, he invoked the international experience in the first place: “The socialist government of Spain applied zero VAT and based on the report of the Spanish central bank, this reduction did not reach the consumer, instead it stayed in the pockets of the middlemen”. And, in our opinion, “for each unit of VAT reduction it costs 1.5 billion. euros, i.e. based on PASOK’s proposals (it costs) 3 billion”. While he also explained that “measures that will not have a practical benefit for consumers and especially the most vulnerable, we are not mandated to implement”.
In the investment chapter he noted: “Investments as a share of GDP in 2019 were at a very low level, at 10%-11%, while in the rest of Europe it was at 21%-22%. In 2025, private and public investments thanks to better tax treatment and a more favorable investment business environment have reached 17.5%”. Citing the figures of the Bank of Greece, he emphasized that these show “a significant increase in investment in manufacturing, in the primary sector, that is, the production model is changing. We have a significant increase in exports, of products not only of services.”
Ultimately, “the goal is in 2027 to reach an economy that will be more productive, more extroverted, more innovative but also fairer. At the core of our policy is justice”, he underlined. Noting that in the past “citizens have suffered a lot from populism, irresponsibility, weak proposals”, Akis Skertsos countered: “We will proceed with responsibility, truth and documentation”.
Last economic topic of discussion, the banks, which, as he said, “are under very strict pressure in terms of fees”, while he described IRIS as a “great achievement”. He explained, however, that “banks are a different market governed by the rules of the European Central Bank. We have to be very careful not to shake the banking system, bank credit, which is very important to give loans for investments.”
The Schertsou interview closed with the imminent meeting of the prime minister and the official opposition leader: “The dialogue between the prime minister and the leaders of the opposition parties is necessary and imperative. There must be a consensus on the major issues and challenges facing the Greek economy.” “We have important milestones ahead of us, such as the constitutional revision, we would like to find consensus between the government and the opposition parties”, the Minister of State emphasized and concluded by saying that “since this cycle of internal turmoil in PASOK has been closed and SYRIZA we can have more and better polyphony, I hope not cacophony, inside and outside the Parliament. The manner in which the dialogue was conducted within the Parliament has, I think, somewhat disturbed the citizens. We need a better quality of democratic discourse in our country.”
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How does the Greek government plan to attract significant foreign investment and promote economic diversification beyond traditional sectors like tourism?
## Interview with Minister of State Akis Skertsos on Greece’s Economic Recovery
**Host:** Welcome back to the show. Joining us today is Minister of State Akis Skertsos, who is here to discuss the Greek economy and the government’s plans for the future. Minister Skertsos, thank you for joining us.
**Minister Skertsos:** It’s a pleasure to be here.
**Host:** Prime Minister Mitsotakis recently sent messages to his cabinet focusing on the importance of empathy and understanding the daily struggles of Greek citizens. Can you elaborate on this message and how it informs the government’s economic policies?
**Minister Skertsos:** Absolutely. The Prime Minister’s key message is that our economic success isn’t just about numbers. It’s about how these improvements translate into tangible benefits for everyday Greeks. We are acutely aware that many people are still struggling despite the positive economic indicators.
**Host:** Greece has indeed shown remarkable economic resilience in recent years, emerging from a decade-long debt crisis. What are some of the key achievements you’re most proud of?
**Minister Skertsos:** We’ve made impressive progress. We’ve restructured the economy, encouraged private and public investment, and fostered a more favorable environment for job creation. We’ve also seen significant increases in wages and pensions, both in the public and private sectors, and are experiencing faster growth than many of our European counterparts.
[1](https://www.imf.org/-/media/Files/Publications/CR/2024/English/1GRCEA2024001.ashx) confirms this positive trajectory, projecting continued growth and debt sustainability for Greece.
**Host:** Addressing inflation and ensuring that benefits reach the most vulnerable citizens seems to be a top priority for the government. Can you elaborate on your strategy for tackling these issues?
**Minister Skertsos:** We’re committed to keeping inflationary pressures in check, ensuring they remain below the increases we’re providing to citizens. In the past five years, we’ve seen salary increases of 25-28%, while cumulative inflation is around 15-16%. We’re constantly working to bridge that gap and provide additional support.
We are also actively engaging with large corporations, especially energy providers and refineries. We aren’t antagonistic, but when we see excessive profits, we intervene to ensure a fairer redistribution and lower prices for consumers.
**Host:** The budget includes a number of salary increases and tax reductions. Can you provide some details about these measures?
**Minister Skertsos:** Absolutely. The budget includes 12 salary increases and 12 tax reductions slated for 2025, adding to the 60 tax reductions already implemented in the past four years. Greece now boasts the largest tax reduction in the European Union, according to Eurostat data.
**Host:** Lastly, can you talk a little bit about investment and attracting foreign capital?
**Minister Skertsos:**
We’ve seen a significant increase in investments, driven by more favorable tax policies and a more business-friendly environment. Investments as a percentage of GDP have risen from a paltry 10-11% in 2019 to a projected 17.5% in 2025. We’re seeing increased investment not only in traditional sectors like tourism but also in manufacturing and the primary sector, signalling a positive shift in the Greek production model.
**Host:**
Thank you, Minister Skertsos, for joining us today and sharing your insights on the Greek economy.
**Minister Skertsos:** It was my pleasure.
