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Our key economic policy priorities for the next 12 months | TheGreekDeal.com
Kostis Hatzidakis
Our key economic policy priorities for the next 12 months
Kostis Hatzidakis gave a presentation on the actions the government took following the elections, including the tax evasion law, the banking system's regulations to increase competition, the out-of-court mechanism for servicers, and the ten privatizations and concessions that contributed 7.1 billion euros to the public coffers.
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Kostis Hatzidakis, Minister of Finance

Kostis Hatzidakis presented the initiatives undertaken by the government after the elections, including the law to curb tax evasion, the regulations to enhance competition in the banking system, the servicers and the out-of-court mechanism, and the 10 privatisations and concessions that took place in the last 11 months and brought 7.1 billion euros to the public coffers. Furthermore, the measures to boost the income of citizens, such as the increase in the salaries of public servants after 14 years, the new increase in pensions, the increase in the tax-free allowance for families with children, the increase in the birth allowance, and the new increase in the minimum wage,.

He also reiterated that our key economic policy priorities over the next 12 months include:

  1. Continuation of serious and responsible fiscal policy, which is the foundation for the overall effort in the economy,. "Under the new rules," he noted, "any surpluses that may arise will not automatically go to benefits, but we will keep them for the difficult years and further reduction of public debt. This is what any prudent rent-seeker does. "This is what a responsible government should do, especially in a volatile and uncertain international environment."
  2. Shaping a stable, fair, and pro-business tax framework. "With the full implementation of the 11 measures to curb tax evasion that we passed last December, we estimate that by 2027 it will generate additional revenue of around €2.5 billion annually. The ultimate goal is to create the necessary fiscal space for further tax relief for those who now bear a disproportionate burden," he said.
  3. Strengthening and improving the functioning of the financial system by creating the so-called 5th banking pillar, settling all outstanding issues in relation to the Hercules programme, further enhancing transparency and fairness in procurement, expanding the IRIS direct payments system, and facilitating access to bank lending for SMEs.
  4. Provide incentives to diversify and modernise our production model. By simplifying the scattered and fragmented legal framework for mergers and introducing tax and financial incentives for mergers,.
  5. Optimal use of the Recovery Fund and the NSRF. "We are in 3rd place in terms of absorption of the NSRF 2021–2027 and in 6th place in terms of absorption of the CDF—well above European averages. But we need to move with even greater speed and efficiency," Hatzidakis said.
  6. Implementation of a comprehensive plan for the exploitation of public property, with the new institutional framework for the modernization of the operation of the Super Fund and its subsidiaries, the establishment of a National Investment Fund, and the implementation of the plan for the exploitation of the real estate of the EBRD.

"With all the mistakes and delays in our country over the last five years, we have been experiencing a revolution of common sense," concluded Mr. Hatzidakis. "In my view, the recent result of the European elections does not change this. It is not a call to change direction or put our foot on the brakes. On the contrary, it is a message that we need to try even harder, to go even faster and more efficiently. With the aim of turning Greece into a modern European country."

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