New Democracy will fight the elections for a second four-year term with the “slogan” of raising wages, as this issue will be the central axis of the blue election programme.
This is why Prime Minister Kyriakos Mitsotakis, in his joint statements with OECD Secretary General Matthias Corman, after their meeting for the signing of a Memorandum of Understanding for the creation of the OECD centre in Crete, highlighted the point of the OECD report that links productivity growth with wages, stressing:
“In the first four years we increased the income of the Greeks by reducing taxes and contributions. Our next bet will be better wages, in line with European wages and reflecting the progress of the Greek economy. All this in the context of a comprehensive social policy, with affordable housing especially for young people and active ageing policies, one of the issues that the new OECD centre in Crete will study.”.
The process for raising the minimum wage is expected to start in January with a consultation with the social partners, their institutes, the Bank of Greece and the KEPI.
The first plethora of information refers to an increase of the minimum wage from 8.5% to 9.5%, i.e. an increase to between 770 and 780 euros. It should be noted that the minimum wage increase concerns 650,000-700,000 workers in the private sector.
The Minister of Health, Kostis Hatzidakis, commented however (Real FM): “I note with surprise the restraint of SYRIZA that talks about 780 euros. I expected that they would exceed 1000 euros because SYRIZA is, whatever it wants to say. I wish wages were 2000 and 3000 euros. But just as there are no businesses with workers on the tiles, and this is something that businesses need to understand, there are no workers without employers. Because if a business ceases to be competitive, it will close down.”.
In his joint statements with the OECD Secretary General, Mitsotakis also estimated that “our country has finally left behind the downhill slide of the memoranda” and that “the mounds are in place so that our economy will be resilient in 2023”.
The Prime Minister promised businesses and investors that if Greek citizens trust ND for a second four-year term, justice reform will be a priority for faster resolution of business and investment cases.
He noted that the energy and inflationary shock of Russia's invasion of Ukraine was felt most acutely by European OECD member countries. He underlined that Greece faced specific challenges, relating to the difficulties of economic recovery after a long period of depression and challenges linked to our neighbourhood, the Eastern Mediterranean and the behaviour of Turkey.
“It is therefore noteworthy that during a turbulent period the Greek economy exceeded the expectations and forecasts of the Organization and proved to be the positive surprise of Europe,” Mitsotakis said.
He recalled that in 2021 growth reached 8.4%, almost double the European average, noted that in 2022 it will exceed 5.5%, again almost double the European average, and estimated that growth in 2023 will be closer to 2% than 1%, stressing that if this estimate is confirmed, the rate will still be three times the European average.
In this way, the Prime Minister attempted to allay concerns about the Agency's forecasts for 2023. Though the government cites the OECD report as a confirmation of its economic policy, the agency points to the inflation peaking at 12.1% in October, the highest in 25 years, and forecasts a dip in growth to 1% of GDP in 2023, with a recovery likely at 2% in 2024.
The agency also criticises the government for taking energy support measures, noting that it is delaying the goal of returning to fiscal surpluses of 2% of GDP, which it says is weighing on Greece's ability to access less expensive investment financing. It is no coincidence then that Mitsotakis defended as necessary and balanced the policy of subsidies on electricity and gas, stressing that the money comes from the taxation of energy companies' excess profits.
The OECD also refers to the lower proportion of young people in work than in other member countries, but also to the fact that women are practically left behind in the labour market.
