TIF 2021: “Surprises” from Mitsotakis on PPC, mobile telephony and young people with “election flavor”

The Prime Minister's speech at Velideion, in the context of the 85th TIF, had several surprises in store, as he “handed out money” and made sensationalist gestures, while at the same time insisting on his basic political and ideological policies, such as the privatisation of supplementary insurance for young people and synergies with the private sector in health care. But the benefits he announced caused the room to wonder whether, despite assurances to the contrary, Mitsotakis is planning elections, no later than the first half of 2022.

The Prime Minister addressed in particular the young and the middle class, while he defined his audience as the “large social majority of rationality and progress, the majority that wants our country to be at the core of Europe, but proud of its history and identity, that demands truths even if they are harsh, the majority that rejects unnecessary polarisation”. . He argued that the New Democracy government expresses a “broad alliance of logic, unity and results” and in this direction he said that his announcements for 2022 will move in this direction, with measures for all citizens and especially for young people.

It should be noted that Mitsotakis chose to speak mainly in a positive way, making few indirect references to SYRIZA. While it is clear that he attempted both to address the traditional base of the New Democracy party, but also to re-approach centrist voters and to “heal” the relationship of the New Democracy party with young people and the middle class.

The Prime Minister announced seven measures for the new generation and a 90-point strategy/policies that will be put to public consultation with young people over the next six months, with events across the country.

7 measures for young people:

1. «First job» / €1,200 for 6 months for young people hired in full-time jobs without previous experience (€600 to the employee and €600 to the employer)

2.Coverage of social security contributions for an additional 50,000 jobs in all sectors of the economy (a total of 150,000 jobs)

3.Extension of the housing allowance of 1000 euros/year to students of public IEK

4.Abolition of a special mobile phone fee for all young people up to 29 years old for cheaper internet access with a reduction of up to 20 euros on each bill/month.

5.a 50 GB gift on their mobile phone for all minors aged 15-17 who have already been vaccinated or choose to be vaccinated by the end of 2021.

6.Establishment of a digital card, a digital wallet, where all the benefits of the state to young people will be collected

7.Abolition of the tax on parental benefits and gifts from parents to children.

Measures to tackle price stickiness - Absorption of PPC revaluations

Mitsotakis recalled the tax reliefs that have been made as a first dike on accuracy and added:

“In addition to the first mound of already increased disposable income, three will be our responses:

First, targeted measures, such as the low VAT rate on mass consumption products such as coffee and soft drinks.

Second, strict control of competition and enforcement of the legal framework on obscenity. Because in Greece, prices are easy to increase but difficult to decrease. I warn some of the sophisticated ones not to take advantage of a global phenomenon to increase their profit margins.

And thirdly, state support against revaluations that directly affect the finances of every Greek home.”

This third point relates first and foremost to increases in electricity prices.

“Greece is the first country to immediately set up a dedicated Energy Transition Fund. This will cover at least 80% of the increases for all consumers,” the Prime Minister announced, underlining that: “We are therefore not only talking about vulnerable households, we are talking about all citizens.”.

Mitsotakis said that in the first phase 150 million euros will be allocated to this fund and noted that the state subsidy, combined with the discount that the PPC will make, will reduce or eliminate any increases in the price of electricity.

He said that for consumption of 300 to 600 kilowatt-hours, which is the average for most households, no more than 2 euros per month will be charged, while otherwise the increase would be from 20 to 44 euros.

He argued that this proves that: “The government knows and can respond to any extraordinary challenge and the PPP as it is reborn has the power to protect its customers” noting that the PPP is also paving the way for private providers.

Mitsotakis said that the subsidy will be used in the first phase until the end of the year and will also apply to businesses with low-voltage electricity.

Cheaper telecommunications

The Prime Minister also announced a number of measures:

Reduced VAT on coffee, transport, non-alcoholic drinks, gyms, dance schools, tourism, cinemas

Feed VAT reduction to 6% for farmers

Increase in heating allowance by 20%

Abolition of the special telecoms levy for young people up to 29 years old and reduction to 10% flat for the rest of the population

Reduction of ENFIA

Suspension of payment of the pay-TV fee

30% income tax reduction for individuals who incur expenses up to 5,000 euros through electronic transactions in specific sectors (e.g. plumbers, electricians, domestic services, gyms, taxis, legal services, etc.)

He also announced that in December, all beneficiaries of the Minimum Guaranteed Income will be paid twice the amount they would normally receive. “An act of relief before the holidays to those who need it most”, he commented.

Measures for employment, investment and business

Deletion of 50% debt from all repayable advances

30% income tax deduction for companies engaging in mergers/acquisitions

50% reduction in capital gains tax

Extension until the end of 2021 of the cooperation programme

Extension until the end of 2021 of the Bridge programme for borrowers

Introduction of 100% overcredits for SMEs making green and digital investments

Income tax reduction on 22%

Extension of the suspension of the solidarity levy for private employees until the end of 2022

Extension of the 3-point reduction in social security contributions until the end of 2022

Extension until the end of 2021 of the Culture Vacancy Grant Scheme

Primary health care structures with PPPs

The Prime Minister also argued that due to the coronavirus pandemic it is necessary to move forward with “health reforms” and in particular:

• Modernisation of large hospitals, stand-alone Health Centres and PPPs for the construction of primary care facilities.
• More efficient EOPYY
• Rationalisation of pharmaceutical expenditure and claw back with a generic expansion.
• Free screening for cervical cancer, breast cancer, colorectal cancer and cardiovascular risk screening from 1/2022.

New projects for Thessaloniki

Mitsotakis also wanted to respond to the discontent that allegedly prevails in Thessaloniki by announcing:

• Double redevelopment of Aris Stadium in Pylaia and a park in Harilaou
• New oncology hospital in west Thessaloniki
• Single coastal front 40 km from Kalochori to Michaniona
• Metro extension study in west Thessaloniki
• Cleaning up of informal industrial concentration in the village

A new reduction in ENFIA is coming

“ENFIA will continue to be reduced on the basis of new property values and a new, fairer treatment of property taxes. The full plan will be presented in the Budget debate,” the Prime Minister announced, adding:

“But what I can say today is that most households in 2022 will pay lower ENFIA than in 2021. And that the additional ENFIA tax will be integrated into the main scale, as we promised during the election.”.

He also mentioned that the 18 Rafale will soon become 24.