St. Kasselakis at SYRIZA's Central Committee: It is our duty to be the voice of society

«It is our duty to be the voice of society», stressed Stefanos Kasselakis during his speech at the meeting of the SYRIZA PS C.O., strongly criticizing the government's policy and the Budget, which is «part of the problem», which «does not address accuracy, does not protect workers, does not support the middle class, but instead burdens them with more taxes.

Kasselakis stressed that «the role of the Left, of the progressive party, is to bring hope in place of fear, to bring real security in place of insecurity, to bring resignation, to bring the citizen's interest in place of anger, to bring confidence in a progressive political project that will change our lives».

The president of SYRIZA PS stressed that the country needs structural reconstruction, noting the need for a «clear plan with progressive content». He listed 11 key priority changes that are part of the more comprehensive plan that SYRIZA is working on:

1. Building a healthy labour market, with wages and rights that allow a decent living, that allow young people not to go abroad. By raising the minimum wage to 900 euros. With collective labour agreements. With a strong labour inspectorate.

2. A clear, stable tax framework. A tax code that will last for at least a decade, with two tax rates for companies: 17% and 24%. «So almost 97% of companies will see their tax rate significantly reduced. And infinitesimal increases will be seen by those few who have an annual profit of more than €220,00. This is a reform that will increase public revenues. And it will be fair,» he said. For individuals: uniform taxation of their income from all sources with a new, progressive scale, with a tax-free threshold of 10,000 euros for all. With a reduction also of unfair indirect taxes, abolition of the business tax and without the absurd advance tax.

3. Redistribute Recovery and Resilience Fund resources to small and medium-sized enterprises, «the vast majority of which do not have access to bank lending and many of which are suffocating in debt».

4. Implementing a fair and inclusive green transition «that will not leave behind thousands of helpless unemployed citizens».

5. An effective programme on housing.

6. Tackling excessive private debt by enabling the Development Bank to buy from funds and servicers the red loans of businesses and households. Protecting first homes, commercial housing, farmland.

7. A strong welfare state, practical support for the Public Health System and its staff. Emphasis on adequate funding, quality and extroversion of education and research.

8. Creating conditions for attracting foreign direct investment, which will have added value for the national economy and will not be limited to the import of products or real estate.

9. Restoring the rule of law and ensuring the transparent functioning of the state, with an emphasis on the real digitisation of its services rather than the creation of additional digital bureaucracy.

10. Improving the judicial system. «We don't deserve to be in position 27.».

11. «To bring back to the forefront as the official opposition and soon as a government the need to exercise an active multidimensional foreign policy, seeking to consolidate bilateral relations of peace and development with our strategic partners in the West on the one hand and with the emerging powers from the East on the other, on the basis of bilateral and multilateral beneficial cooperation in the Balkans and the South-Eastern Mediterranean».

Kasselakis stressed that because SYRIZA-PS is a «force of patriotic responsibility», he voted in favour of defence spending, «as we support the strength of the country's Armed Forces». «At the same time, however, we reserve our right to scrutinise and judge any relevant programme so that it truly serves operational capabilities without undermining the national economy,» he said.

He stressed that SYRIZA's plan «aspires to become the majority current in society. A grand social alliance that will defeat New Democracy in the next national elections». «But also in the European elections, as difficult as it may seem, the bar is set high: To victory,» he added. He commented that «we are not concerned with a petty confrontation within the progressive space about who will be more or less second. This may concern some others who keep talking in the name of the democratic party, but have forgotten what the historical role of the democratic party is in this country: To stand against the right and win it.».

He noted that «since we are next to the citizens every day, we listen to them, we talk to them, we demand, we propose, we become their voice, we can be optimistic that we will win again: Their interest first. Then their trust. And at the ballot box, their vote.».

«Mr Mitsotakis» 41% has feet of clay"

Starting his speech, Mr.Kasselakis thanked all the MPs who are fighting the battle for the budget with documentation and arguments, for the fact that «they are fighting this crucial political battle from the right side, from the side of justice against injustice, from the side of equality against inequality, of progress against conservatism, of the interests of the great social majority against a policy that favours the few and the powerful. With empathy against the arrogance of the 41%...».

He stressed that «without an effective, interventionist, fair state, there can be no prosperity in our society, and the country's enormous potential of its people cannot be exploited. This is the huge difference between us and the South West». He said that watching the budget debate, «it is obvious that two worlds are colliding.» «What the ministers and MPs of the New Democracy are saying these days is taken from the harshest traditions of trickle down economics,» he commented. He added that Mitsotakis today will repeat the «triumphalisms about ‘growth and investment miracle’», but «we see the ‘absence of miracle’ out there, every day, in society».

Kasselakis noted that Mitsotakis did not receive a blank cheque with the 41% and argued that «this figure has feet of clay». He commented that «it is not only in the society that feels betrayed, but also within the Southwest: «where those who bow to Erdogan are in direct conflict with those who say ‘Erdogan should not have come to Athens’, with Mr Samaras leading the way. Where supporters of the inhuman term ‘illegal immigrants’ are in direct conflict with those who suddenly remembered that we are short of labour and need immigrants to pick the olives. Everyone is against everyone in the Southwest, except for Mr. Adonis Georgiades, who has the unique ability of a chameleon, transforming himself from an Elladeboras to an oil trader in a matter of seconds.‘.

«Glaring deviations from the European average»

The president of SYRIZA PS argued that the recovery of the investment grade is an important development for the economy and that the historic contribution of the SYRIZA government to this is not disputed by anyone, but «at the same time it makes the country's weaknesses more apparent» and «the discrepancies between Greece and most European countries are glaring».

He said in particular that Greece is 25th out of 36 in Europe in real GDP growth between 2019 and 2021, that it is in last place in the investment-to-GDP ratio, with a deviation of almost 9% of GDP from the EU average and an investment gap of around €17 billion. Also, a 6% deviation in exports of goods and services and «a major government fiasco in terms of investment», which the government estimated at 15.1% for 2023 and «comes out at 7.1%». He added that two-thirds of the investment growth «is nothing more than a buyout of red loans», which shows «the huge inability to generate investment that increases net capital formation and domestic value added through employment and wages».

Kasselakis said that this is happening in a very specific international and European context, where the Eurozone economy is slowing down, the terms of the Stability Pact are coming back. «Obviously, Mitsotakis identifies with those forces that do not want the deepening of Europe, do not want the rationalization of the Stability Pact rules, as he has agreed to the second largest fiscal discipline,» he commented.

«Citizens can't pay for ‘colourful’ electricity, but some ‘blue’ people are getting rich»

Kasselakis noted that «Greek society suffers from the accuracy, from low wages, the housing crisis, the private debt» and that while citizens are facing inflation and the reduction of disposable income, «the Mitsotakis government brings yet another budget that is not only far from the needs of citizens, but a budget that is part of the problem, that creates the problem».

He commented that while the government insists that accuracy is imported, Greece is «first in a number of indicators» and that «in yet another budget the government is not reducing indirect taxes, as 12 countries in the EU have done». He commented that even ministers cannot explain how the colourful tariffs in energy will work and that «the government is doing nothing more than indirectly reinstating the indexation clause and at the same time, the golden boys of PPC are preparing to enjoy for another year new lavish bonuses: half a million extra will be given to seven executive members and 66% increases will be seen in the salaries of three executive members of the PPC Board of Directors». He reiterated that it is SYRIZA's standing position that the state pillar in electricity is a permanent position. He commented that «citizens cannot pay for ‘colourful’ electricity, but some ‘blue’ people are defiantly getting rich on their backs» and that «this is a political choice of Mr Mitsotakis».

He accused the government of claiming that it does not increase taxes, noting that «when VAT stays constant in inflationary conditions, the tax increases» and that «VAT revenues increased by 40% from 2021, 7 billion euros». «Indirect taxes are the most unfair and are now at 63% of the mix with direct taxes,» he said. He also said the data «refutes government lies» that revenue growth is from growth, noting that «Greece in 2022 set a 27-year record in tax collection as a share of GDP, with taxes collected at 29% of GDP».

«Greed inflation»

Kasselakis also strongly criticized the «unfair tax bill, with the horizontal presumptive taxation for freelancers and self-employed». He spoke of «an unfair policy that has the audacity to even call it ‘fighting tax evasion’». He commented that the government «after having deceived the middle class, is now targeting all freelancers as ‘tax evaders’. And at the same time, some others - the few and powerful - are accumulating excess profits. And they are enjoying a defiant tax break from the government.».

He said that «listed companies are drowning in excess profits, €10.4 billion net profit in 2022» and that according to the press, 70 listed companies are preparing to distribute €3 billion in dividends. He said that at the top of these dividends are power companies, refineries, banks. For banks, he said that their profits for 2022 and 2023 are 7.5 billion euros, because «lending rates are sky-high and deposit rates are almost zero, and commissions are very high.» At the same time, he accused the government of deciding to disinvest the Hellenic Financial Stability Fund from the banks« equity, which »leads to a loss of more than 40 billion euros for the State«, while he also accused the government of selling shares in HELPE, »losing control of the most important today - from a national and strategic point of view - company".

He stressed that «at the same time as they were introducing the freelancers» tax, in the same bill they were reducing the capital gains tax and the tax on the sale of listed shares«. He further said that the government had made alchemy so that out of 2.2 billion in excess profits in electricity and refineries, »only 350 million euros have been returned to consumers".

«It is these excess profits that are nibbling away at people's incomes. It is called greed inflation,» the SYRIZA president stressed, adding that the Commission in its autumn report ranks Greece among the countries with the highest contribution of corporate excess profits to inflation, above 50%. «The government talks about imported inflation, simply because it does not want to say a word. The word ‘obscenity’.».

«Redistribution of income and property by choice of the Mitsotakis government»

Following this, he argued that «by choice of the Mitsotakis government», a mechanism of income redistribution from the working and middle class to the big few is evolving.

He said in particular that «workers are under unbearable pressure and any increases in wages do not even cover the losses from inflation. The same is true of pension increases.» «From the first quarter of 2021 to the second quarter of 2023, the general price level has increased 16.1%. In food items 25.5%. Wages have increased only 6.9%. This leads to a decrease in real wages by 8% in general terms and by 15% in food items terms,» he said, noting that «the country has the lowest average wage in the Eurozone.» He stressed that with the new tax law the government «created another mechanism of wage compression, as the regulations link workers» wages to the presumed income of the freelancer who employs them« and ‘push freelancers to reduce the wages of their employees in order to avoid paying more tax themselves or to pay them a part of their wages »in the black'." He added that small and medium-sized enterprises remain excluded from the Recovery Fund and the NSRF and that the majority of them cannot even get a loan.

Kasselakis argued that the Budget does not do anything substantial on housing, nor on private debt and red loans. «On the one hand with the 2020 bankruptcy code and on the other hand with ‘Hercules’ the way has been opened for thousands of foreclosures. Without any framework for the protection of the first home. But it has given additional privileges and immunities to servicers.» He commented that «if precision, horizontal taxation and high indirect taxes are one side of the bottom-up redistribution of income, the government's policy on private debt is the other side of redistribution, of wealth.».

He accused the government of completely ignoring the consequences of the climate crisis in its budget. In addition, on Public Health, he said that an additional €3 billion in Health spending is needed to converge with the European average, and that for Public Education the budget is below 3%, while the European average is around 5%.

«This is the reality that the citizens of the country live and not the virtual reality that the Southwest is trying to sell us with the help of its powerful communication mechanism,» he commented. «Low productivity of the economy. Low wages. Low living standards. Ultimately, low expectations. We will not allow ourselves to become a society of low expectations,» he stressed.