The economic proposals of ELAS of Alexis Tsipras hardly stand up to even basic scrutiny and are reminiscent of the infamous program of Thessaloniki.

As much as ELAS attempts to convince us that it is something… new on the political scene, the public statements of its officials bring back memories of a period that many believed had definitively ended. The recent appearances of Antonis Saoulidis, Marizeta Antonopoulou, and Nikos Nifoudis clearly demonstrate that their economic proposals hardly stand up to even basic scrutiny.

From the assumption that the program has not yet been costed to the belief that 1,500 taxpayers are enough to raise 4 billion euros, the economic arguments put forward by ELAS officials raise more questions than they answer. And against this backdrop, Alexis Tsipras himself is putting forward proposals that are rather reminiscent of the infamous Thessaloniki program.

In any case, the Greek Left Alliance now appears to have a trio of officials who seem determined to rewrite the laws of economy, taxation, and common sense.

It is noteworthy that Marizeta Antonopoulou, in presenting the key priorities of ELAS, argued that the party has a comprehensive program for the economy and the welfare state. However, when the discussion turned to the cost of the measures, she admitted that the full cost analysis has not yet been completed and that it will be presented next year.

At the same time, Antonis Saoulidis, attempting to answer the question of where the necessary resources would come from, argued that simply by increasing taxation on approximately 1,500 taxpayers with tax identification numbers who report incomes exceeding 900,000 euros could yield a fiscal benefit of 4 billion euros.

In other words, if the 4 billion euros came exclusively from 1,500 taxpayers, this would mean an average additional tax burden of over 2.6 million euros per taxpayer identification number. Party officials’ statements regarding increases in taxation on dividends, capital gains, and what has at times been described as an additional burden on large corporations. The ELAS’s main argument is that a small segment of financially powerful taxpayers can fund a broad package of social benefits.

But the data itself proves that the economic rationale of Tsipras’s party is not based on reality, but on what his voters want to hear. Namely, that it will tax “great wealth.” The reality of what is feasible, however, is entirely different.

This is because international experience shows that raising tax rates does not always lead to a corresponding increase in public revenue. On the contrary, in many cases it leads to the transfer of investment capital, the postponement of investments or a search for more favorable tax regimes. It is noteworthy that in recent years, public revenue from dividends has increased significantly even though the tax rate was reduced from 10% to 5%.

Conversely, revenue from corporate taxation has risen significantly compared to 2019, despite the fact that the tax rate has been reduced from 28% to 22%. These figures obviously do not mean that every tax cut automatically increases revenue, but rather that the relationship between tax rates and public revenue is far more complex than is presented in the public statements of Hellenic Police (ELAS) officials.

At the same time, another proposal by opposition representatives is of particular interest, specifically the reinstatement of the 13th pension and 13th salary in the public sector. According to estimates, implementing such a measure is expected to require additional resources of approximately 4 billion euros each year. Moreover, under current European fiscal rules, the funds cannot be sourced from extraordinary or uncertain revenues. In other words, countermeasures must be taken… but the opposition has not announced them.

In conclusion, it appears that once again, empty promises of Alexis Tsipras and his officials will serve as the main fuel to set their political narrative in motion. But Greek citizens have seen the work and learned their lesson.