Mr. Hadjidakis: Prime Minister announces new tax - contribution reductions tomorrow

Greece had the second highest growth rate in the EU in the second quarter of the year. This may be irrelevant to the preachers of nihilism, but it is further proof that Greece may not have beamed to the top of Europe after the huge problem we faced in the last decade, but we are nevertheless one of the fastest growing countries in the whole of the EU.

This was pointed out today by the Minister of Economy and Finance Kostis Hatzidakis, speaking at the Economist's «The Fourth Thessaloniki Metropolitan Summit» conference in Thessaloniki.

The Minister stressed that the policy mix that underpins this effort is the trifecta of economic freedom, encouraging creativity and social justice.

«When we talk about economic freedom, we are mainly talking about tax cuts. In the Prime Minister's statement tomorrow at the TIF there will be further reductions in taxes and social security contributions, which will be positive for citizens and the economy,» Hatzidakis said. He also recalled that there have already been about 50 tax cuts, such as on ENFIA, taxes for families with children, gifts-inheritances and parental benefits, for legal entities, dividends, stock market transactions, and treasury bills.

«In 2023 without raising any tax we had a revenue increase of 9% due to growth and reduction in tax evasion. In the first half of 2024 with inflation below 3 % we had a revenue increase of 10.5%. Which means 7% comes from growth and reduction in tax evasion. Here is the linkage of POS with cash registers and the 11 different initiatives unfolding at this level,» the minister said.

In relation to encouraging creativity, Mr.Hadjidakis focused on:

-The simplification of the business environment through interventions by both the Ministry of Development and the Ministry of Environment.

-The labour law passed during his time at the Ministry of Labour, which addresses a number of rigidities in the labour market and enhances competitiveness.

-Interventions to boost innovation and promote mergers to make businesses more competitive.

In the area of social justice, he stressed efforts to tackle tax evasion and to take care of workers, especially those paid the minimum wage. The minimum wage, he said, had increased by 27% over the last four years, a rate that exceeded inflation, while the increase for the average wage was also significant.

Mr Hatzidakis also made special reference to developments in the banking sector and the agreement on the merger of Bank of Attica with Pankritia. «The banks have entered a new phase, they have positive ratings from the supervisory authorities and the disinvestment of the HFSF has proceeded positively and was met with great interest by investors», the Minister stressed and concluded:

«We are interested in having a healthy and robust banking system but at the same time it should work for the economy, citizens and small and medium-sized enterprises. That is why we have promoted the fifth banking pillar. There was a 12-year pending issue with Attica Bank, in July the issue was resolved with the agreement to merge with Pankritia, which was carried out with absolute transparency and clarity, for the benefit of the banking system, the economy and consumers.».