Mitsotakis: Reliable and costed fiscal policy is a fundamental principle
Source: ProtoThema English
The impressive growth dynamics of the Greek economy were mentioned, among others, by the Prime Minister Kyriakos Mitsotakis, who participated today in a discussion with BlackRock Vice President Philip Hildebrand and Adebayo Ogunlezi, chairman and CEO of Global Infrastructure Partners, at the Athens International Investors Summit investment conference, organised by Yperat Fund and BlackRock. He stressed that the fundamental principle is a reliable and cost-effective fiscal policy so that fiscal and macroeconomic stability is not questioned, that the benefits from the fight against tax evasion are returned to citizens, while he also highlighted the importance of defense, which he called the supreme European public good.
The Prime Minister also had the opportunity to address, before powerful investment players with broad portfolios, the country’s prospects, investment opportunities, and challenges in several sectors, and the issues of green transition and energy.
During the forum, the establishment of the Hellenic Innovation & Infrastructure Fund, which is the investment arm of the Super Fund, was announced.
“We are growing at a much higher rate than the eurozone average, while at the same time reducing taxes, focusing on private investment, promoting entrepreneurship and improving the business environment,” the prime minister said during his remarks. “We have achieved all this in an environment of political stability. We have a government with an absolute majority. In 2023, the citizens rewarded us by giving us a new mandate. I think this sets us apart from many other European countries, because coalition politics can be very complicated,” Kyriakos Mitsotakis continued.
“I think the big challenge, from a political point of view, is to link the macroeconomic situation to everyday life and work, in an environment where the cost of living has become a big problem,” the prime minister stressed.
“I think there is a general understanding that this page turn is here to stay. My job is to ensure that the changes we have implemented are irreversible. That’s my commitment to the investment community and, frankly, the main reason why I want to seek a third term. To ensure that what we have achieved continues and that the wealth we are creating for the country is maintained. My first commitment in 2023 was to raise wages. When I see unemployment falling from 18% to 8%, that means that real wages are rising, Kyriakos Mitsotakis noted. “This is the only way to truly distribute wealth,” he added.
Referring to the importance of reliable and cost-effective fiscal policy, the prime minister noted: “The fundamental principle of our approach has always been not to question the pursuit of fiscal and macroeconomic stability. The 2009-2010 crisis was a consequence of the spending derailment and our failure to focus on fundamentally restructuring our economy. We will not repeat the same mistake, ever. That is why our commitment to generate primary surpluses and, whenever possible, fiscal surpluses, will not be challenged.”
The Prime Minister also stressed that the benefits of the fight against tax evasion are returned to citizens through systematic tax cuts, with an emphasis on middle incomes, young people and families with children.
“The biggest reform that has contributed to the state budget has been our ability to address the problem of tax evasion. This brought a lot of money into the public coffers, which we now have to return to the citizens. So we reduced taxes for the middle class. We have reduced taxes for families with children. We have reduced income tax to zero for those under 25 years of age. I want to encourage young people to join the workforce; I don’t want them to wait years. I respect young kids who go to technical school and enter the workforce at age 20. I want them to know that we are thinking about them,” he said.
During the debate on the future of European defence, given the current geopolitical landscape, the prime minister said: “We will need to mobilise not only private but also public funds. We will need to mobilise European public resources for defence. I have been clear on this issue; I have spoken about it on many occasions. The recent incursion of Russian drones into Polish airspace has brought to the fore something that we already know is a major problem, and that concerns missile defence and air defence systems in Europe. Therefore, my proposal is very clear: a pan-European tool for what I consider to be a pan-European good. And defence is the ultimate European public good. We cannot allow our national priorities to become an obstacle to tackling what is essentially an existential threat to Europe. Can this happen? The answer is that I see much greater potential. Some of the traditionally ‘frugal’ countries, such as Denmark and Finland, are much more open to the idea of joint European defence borrowing.”
Kyriakos Mitsotakis also addressed, among other things, the issue of green transition and energy. “Greece has been extremely successful in adding renewable energy sources, both solar and wind, to our energy mix. We produce more than 50% of our electricity from renewable sources. Especially in spring or autumn, we have the possibility of having all our electricity generated for hours from renewable sources. For the first time this summer, we have also seen greater price convergence between Western, Central, and South-Eastern Europe,” the Prime Minister said.
“We need more interconnections. We have become net exporters of electricity. This has never happened before. But, of course, we will need additional investments in baseload – in the case of Greece, we are talking about natural gas – and of course, investments in storage. This is the plan as to how we intend to proceed with the green transition in a realistic way, but also taking into account that for us, renewable energy sources constitute an important comparative advantage,” he added.
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