The government's shift from now on increasingly to four priority areas, namely investment, exports, ensuring healthy competition in the market, and strengthening the competitiveness of the economy, was underlined by the Minister of Economy and Finance, Kostis Hatzidakis, speaking at the World Ahead 2025: Athens Gala Dinner event organised by The Economist.

"Since we have managed to stabilize macroeconomic variables, our attention is now more focused on microeconomic parameters. We are moving, as economists say, more from macro to micro," he said, speaking at The World Ahead 2025: Athens Gala Dinner event organised by The Economist.

In particular, he noted that in 2025, based on the overall government planning, a number of key priorities will evolve, which by sector include:

INVESTMENTS

Continuation of the improvement of the business environment through the preparation of local and special urban plans, completion of the National Land Registry, and acceleration of the administration of justice (actions already underway). At the same time, the new development law will seek to be more closely linked to the provision of additional tax incentives.

Access to finance for enterprises by enhancing competition in the banking system and upgrading the functioning of the stock exchange and the capital market. Also, further use of the loan arm of the Recovery Fund in conjunction with the Development Bank and the new National Investment Fund.

EXPORTS

A key objective is to penetrate new promising markets such as India and China. Targeted financial instruments will be used for export and exhibition companies, in addition to the recently announced €200 million "SME Outward Focus" program. In addition, actions to simplify and digitise customs procedures are being implemented. While tax incentives targeted at specific sectors that offer potential for boosting exports are also under consideration.

COMPETITION

"The government will continue to intervene in cases where the market is not functioning efficiently, as was the case in banks with the reduction or abolition of 6 categories of commissions and in insurance companies with the intervention to limit increases in health insurance premiums," Hatzidakis noted. At the same time, it is determined to examine remaining barriers to market entry that hamper competition and work against growth. "And the Competition Commission, I am confident that it is stepping up its efforts to tackle cartel phenomena in the market," he said.

COMPETIVENESS

A key priority is to contain non-wage costs by reducing non-wage costs by one unit by reducing social security contributions, which was implemented this year, and a further reduction of half a unit is planned in 2027. The implementation of the new law on incentives for innovation and mergers, which is the strongest in the EU, and the shift of the NSRF, the Recovery Fund and the Development Bank to initiatives that strengthen innovation will contribute to improving competitiveness. As well as reducing energy costs by investing in networks and strengthening the skills of the workforce.

In the same context, tax cuts are being pursued in conjunction with a concerted effort to tackle tax evasion: "The apparent overshooting of the 2024 budget targets creates conditions for new positive initiatives. Initiatives for further tax cuts for all consistent taxpayers that will be announced by the Prime Minister in the autumn at the Thessaloniki International Trade Fair," Hatzidakis said.