Kyriakos Mitsotakis: My primary goal is to increase real wages

Prime Minister Kyriakos Mitsotakis participated via teleconference in a discussion with Jamie Dimon, Chairman and CEO of JPMorgan Chase, as part of an investment roadshow for Greece in New York.

Referring to the progress of the Greek economy and the government's priorities, the prime minister noted:

You mentioned the cover of The Economist magazine. I remember another cover of The Economist that showed a helicopter flying over the Acropolis, and the title was «Acropolis Now,» a clear reference to «Apocalypse Now,» a film from the 1970s. I couldn't help but reflect on the progress we have made since then. Especially since 2019, I believe that what we have achieved on behalf of the Greek people is significant. And of course, investors who believed in our story from the beginning have also benefited greatly from Greece's success story. We came to power in 2019 having inherited many problems, but we were very clear from the outset that we had to put the economy on a path of sustainable growth without jeopardizing our fiscal position.

We achieved this by changing the growth structure of the economy. It is no longer an economy that continues to rely mainly on consumption, but much more on investment-based growth. If you look at the rapid increase in foreign direct investment in recent years, it has been impressive.

I remember when I first attended the World Economic Forum in Davos as prime minister in 2020, there was skepticism about our arguments regarding the country's growth prospects. Now it is obviously much easier and there is much greater interest from foreign investors, in all sectors, to invest in Greece.

I want to focus here on the distinction between policies and politics, because in our case politics never dominated public debate, in the sense that we did not cling to ideological approaches. We focused on practical solutions that actually worked. We acknowledged mistakes whenever mistakes were made. And I believe that this is also the way to rebuild trust, which is a fundamental component for the progress of any country.

I believe that citizens rewarded this trust in the recent elections. We kept our promises by always focusing on the problems of citizens.

And that is why all our social policies and any surplus we manage to generate are channelled specifically to those who need it most.

Finally, as an introductory remark, unlike many other European countries, we have a stable government with an absolute majority, which continues to enjoy strong support from the public.

And we have a clear field ahead of us, in the sense that we don't have elections—we have the European elections, but they are not going to change the fundamental dynamics. At the same time, I remain as committed to reforms as I was in 2019. So, my commitment is to push ahead with reforms, always with an emphasis on fiscal discipline.

Regarding the government's reform work and the goals it has set for its second four-year term, Kyriakos Mitsotakis stated:

Anyone who leads a large organization or, in my case, who has a leadership role in a country, knows that complacency can be disastrous. Nothing could be more dangerous for us than to say: «OK, we've secured a second term, we still have a big lead in the polls, we've regained our investment grade rating, so we can slow down.»I am doing exactly the opposite: I am pushing through all the difficult reforms now.

We are fully aware that we still have a lot of work to do in the area of competitiveness, improving the business environment. We are placing particular emphasis on reforming the justice system. The time it takes for a case to be heard in Greece is unacceptable. We have just approved in the cabinet an important legislative initiative to streamline the way our courts operate and the allocation of staff to them. And, of course, we seek to make our country leap forward whenever possible. In the digital sector, for example, we introduced gov.gr as the central point of contact with the state, and it is now the second most popular Greek brand.

I have set very clear goals. My primary goal is to increase real wages, because we know that the cost of living remains high. As unemployment falls, wages rise, which is good, and it is also good for businesses. They will have to pay more to attract highly skilled workers, and they can do so because we have reduced tax rates. Our stance on businesses has been very clear from the outset: we are reducing taxation on legal entities and dividends, and we are simplifying the regulatory framework. Businesses are benefiting from the country's overall positive performance. I am sure that your audience recognizes this. However, as businesses, you also have responsibilities, primarily towards your employees. You must pay them better than in the past and, moreover, you are forced to do so in order to attract highly qualified personnel.

Regarding the fight against populism, the prime minister said: Two lessons from our experience with populists, because in a way we have similar experiences which, I believe, every politician should hear: first, never confuse your opponents with their voters. The problems of citizens that populists «feed» on are real and must be acknowledged. Second, do not exaggerate your successes, especially when it comes to the economy.

For his part, Jamie Dimon, chairman and CEO of JPMorgan Chase, said: «Greece has embraced a sound path to economic growth, supported by prudent policies and reforms that are making an impact, and has achieved an impressive reduction in its debt-to-GDP ratio. The strong interest of the international investment community in Greek companies, which we are now seeing, is proof of the dynamism of the private sector in the country and an important step towards sustaining growth in the future.».