The key to Greek economic success lies in the combination of fiscal seriousness with a business-friendly policy, states in an extensive interview with the French magazine L’EXPRESS the Minister of National Economy and Finance Kostis Hatzidakis.
“We’ve had a dramatic decade. Today, I think Greece is turning out to be a good surprise for the Eurozone and the European Union. Our economy has recovered quickly in the last four years despite successive crises: pandemic, energy prices and the war in Ukraine” explains the minister, underlining that Greece has achieved fiscal consolidation thanks to an unprecedented rate of reduction of the debt-to-GDP ratio in the zone of the euro and restored its primary surplus a year earlier than planned.
Regarding the measures taken by the Greek government in the exercise of economic policy, Kostis Hatzidakis stated that the corporate tax rate, the tax on dividends and employer contributions were reduced, noting at the same time that a special regime was created that aims to attract tax residents abroad , with a 50% income tax exemption for seven years for those who create jobs in Greece. “Our goal is to convince our compatriots who left abroad several years ago – the brain drain generation – to return to the country.”
Also referring to the introduction of the Athens airport to the stock market, Kostis Hatzidakis emphasized that this action “made it possible to strengthen the Greek stock market with a large company but also to strengthen the airport itself, which needs investment to modernize it”.
Asked followingwards regarding the reduction of tax evasion in Greece, the minister replied that the loss of revenue from non-payment of VAT, which reached 23% in 2018, fell to 15% in 2023 and that the government took measures to combat tax evasion in eleven sectors, including the self-employed and the oil sector. He also noted that according to opinion polls, the majority of Greeks support the government’s initiatives, pointing out that for years, the self-employed paid in Greece, on average, less taxes than other Greek workers and that this was unacceptable.
Regarding the issue of public debt, Kostis Hatzidakis pointed out that the goal is to reduce it to 140% of GDP in 2027. “We have learned the lessons of the past. We know that Greece was living beyond its means and that today investors and markets are closely watching what is decided in our Parliament” said the Greek minister. Finally, commenting on the holding of the Olympic Games this year in Paris, 20 years following the corresponding ones in Athens, Kostis Hatzidakis noted the following: “I disagree with the opinion that the 2004 Olympic Games were the cause of Greece’s fiscal crisis. The problem was much bigger. We remember these Games, not only for the stadiums and buildings that remain, but also because the Greeks have a special connection to this event. It is part of our heritage to the world. We are very happy that France is hosting the Games this year, in Paris. I am sure that many Greeks will watch them on TV, or will come there.”
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