Kostis Hatzidakis, the Minister of National Economy and Finance, declared during his speech at the Money Review-organized Mergers & Acquisitions Summit that the government is promoting a contemporary, straightforward, and transparent framework for corporate transformations, tax incentives, and increased grants from the NSRF and the Development Bank for mergers and investments in research and innovation.

Hatzidakis said that M&As are a key tool for the transformation of the economy as they lead to the creation of larger and more dynamic businesses that can compete internationally while offering more and better quality jobs. Moreover, they are linked to attracting investment, which entails an inflow of capital into the country but also often an inflow of know-how from abroad.

In this context, in addition to sound economic policy, with an emphasis on reforms and the cultivation of an investment-friendly climate, the government is making specific interventions to encourage mergers, which, as the minister noted, include the following:

A bill on corporate transformations that will soon be submitted for approval. "Today there is a scattered and fragmented framework that goes back to 1972 and is spread over laws of different decades. And this, understandably, is not conducive to an investment-friendly environment. Our goal is to formulate a clear regulatory framework that will be the central reference point for companies and investors who want to engage in mergers," Mr. Hatzidakis said.

This bill will include, among other things, tax incentives for mergers—in addition to the incentives introduced three years ago by the New Democracy government—but also for investment in research and development, as the minister noted that innovation and growth are largely interrelated concepts.

By autumn, the NSRF and the Development Bank will be implementing additional financial incentives for mergers and innovation. In particular, further subsidies for investments by companies that are the product of a merger are foreseen, so that these companies have additional means to grow and innovate.
"Sustainable economic growth rates require a more competitive economy. And this, in turn, requires larger, more outward-looking firms. With incentives and without coercion, because we are not a Soviet country, there is no economist of any political stripe who would not suggest that we move in this direction," the minister concluded.