The Deputy Minister of Finance, Dimitris Markopoulos, speaking on ERTnews Radio 105.8.
“It is clear that Greece is heading to Brussels with Kyriakos Mitsotakis, putting all of Greece’s demands on the table. Let’s say that this is a program which, in the context of the global situation—as we see developments in the Middle East and Ukraine—addresses a series of fundamental functions and key issues, a discussion at the leadership level, which will take place regarding the new negotiating framework—and, moreover, during the Cypriot presidency. This is significant.
We have—and are entitled to, given the very strong performance of our economy—set ambitious goals, of course in line with a European budget and specific budgetary targets. In any case, protecting cohesion funds for agricultural policy remains a priority for our country, and ensuring competitiveness—this is extremely important, because we are an economy that has lost competitiveness in recent years and during the crises, and we must always close the gaps. At the same time, and based on the positive experience of the Recovery Fund, it is logical that we have argued that common European funding is needed for investments in common European goods, energy, and defense.
We face new challenges as Europe. It is a given that these challenges affect Greece, perhaps more so than other countries. This is because Greece—and the Balkans more broadly—face unique circumstances even in the energy crisis. Therefore, there must be a shift in focus and a commitment to these areas, but also obviously, we know that defense spending in Greece has always been high, costs that other countries did not have and now recognize due to the complex context” said Mr. Markopoulos.
“We must understand that ‘the free ride is over’—we’re moving toward what’s feasible, without risks but with some relief measures”
When asked what the economic team is preparing for the TIF package, Mr. Markopoulos, noting that it is still too early for announcements, he pointed out, however, that consultations have already begun, not only within the internal team and among the relevant ministers, but also regarding the overall direction of the Maximos Mansion as well as with social partners.
“Therefore, things are moving forward; this is a negotiation with depth. However, I believe that certain things needed to be made clear and should be clarified to avoid any distortions.
Quite rightly, then, the Prime Minister has outlined the situation in recent days, as has the Minister of Finance. This—the “get-rich-quick” scheme is dead—is something we need to understand, because unfortunately, as an economy, we have a long history of mistakes, a long history of what I call economic populism, which ultimately leads us in the wrong direction. We must therefore tell citizens that we can do the best we can, what is feasible.
Last year we provided an exceptionally large and generous package, which was recognized. It is no coincidence that New Democracy, despite so many successive international crises, remains steady in the polls and is rising compared to last year. We provided 1.7 billion euros. “So here, we will seek to avoid taking risks, to avoid deficits, and to provide relief to citizens,” explained Mr. Markopoulos.
Regarding figures that have already been released, concerning one billion in available fiscal space that could be directed toward tax cuts, when asked which tax exemptions are being considered and how discussions with social partners are progressing so that the proposals can be turned into measures to be announced by the Prime Minister at the Thessaloniki International Fair, the Deputy Minister of Finance said the following:
“I’ve already been meeting with them since Friday; my door is open. I follow an open-door policy and have met with—and will continue to meet with—other social partners. It’s just that the new bill has been introduced in recent days, which outlines a series of measures that we consider to be very positive, measures, and that is why our meetings with these organizations will continue starting Wednesday.
Now, as for the need to further reduce taxes, the trend is clear. We have shown the way forward. Increasing citizens’ income and reducing taxes. Obviously, I’d also like to contribute my own touch, together with the economic team and our minister, Mr. Pierrakakis, toward further tax cuts—that is, so that we can go beyond the 83 measures already in place to reduce taxes and social security contributions. And who wouldn’t want that added? All of this will be examined.”
Responding to criticism that the government has forgotten the middle class, Mr. Markopoulos expressed his disagreement and said, “For example, the fact that right now, with the bill we’re introducing today—which we’re debating today in Parliament —1,000,000 families will receive 150 euros per child, aren’t they middle class? Second, the fact that we’re providing civil servants who will be assigned to the provinces with housing allowances so they can cope with the cost of living and find homes to live in— that’s what the middle class is. Obviously, you’re referring to the presumptive tax system and the self-employed. (…)
Isn’t the fact that 83 taxes have been reduced a policy in favor of the middle class? The fact that we’ve taken measures—do you recall a series of them, for example, regarding pensioners and the personal allowance—doesn’t this apply to pensioners, who are also part of the middle class? It doesn’t mean that retirees are destitute.
But let me tell you, since I saw that you questioned our policy toward the middle class, I’ll remind you that while many pensioners belong to the middle class, and there are obviously lower socioeconomic strata as well, the fact that pensions have increased by an average of 16% since 2023 represents concrete action. I’m not saying that this solves all the problems. Far from it. I’m not saying we have a magic wand, but we’re seeing a trend… six minimum wage increases.”
“The 13th pension costs 2.5 billion euros — We’re talking about what’s feasible and about relief measures with a holistic approach”
Regarding the tax exemptions which, according to reports , the government is considering, the available fiscal space, and where these will be targeted, when asked if there is already a clear picture, he replied that “First of all, regarding the amount, there is currently an estimate, but there is also a sense of optimism, and I’ll keep that in mind.
I believe things can move forward; the trend is positive. And you know, since some people think it’s all about taxes, let’s say that growth also comes from increased investment and from cracking down on tax evasion. Some say that with indirect taxes, you’ve destroyed society or the surpluses, because only 10% of the surpluses comes from indirect taxes, which we reinvest in social policy. My sense is that we will take a holistic approach to tax relief and benefits at the upcoming Thessaloniki International Fair.
There are social groups or policy areas that absolutely must be addressed. And self-employed professionals are also there, and there are clearly issues concerning Greek families and private-sector employees as well. There was a lengthy discussion, for example, and as you know, I made some statements on Monday. Of course, retirees are a very important group, and in fact, starting on the 1st, there will be further increases for them as well. “We have 700 million euros linked to the trend of inflation and GDP.”
Regarding the issue of the 13th pension raised by the opposition parties, Mr. Markopoulos noted that this is something entirely different.
“We’re talking about what’s feasible. A 13th pension, not as SYRIZA described it—with amounts of 400 and 500 euros that they labeled a 13th pension— I mean a 13th pension that is calculated based on the actual pension amounts each citizen receives, which means that 2.5 billion euros would have to be allocated just for this. What does this mean? How does it translate? It means that one social group—a very dear one, which we’re already helping and will help even more— but no one else will get anything else. Or if we also give to civil servants—which was also a topic of discussion— the first pay raises for civil servants were given by us. Others take, we give,” he pointed out.
As for when the expected announcements will be implemented, and whether their effective date will be set—as it is every year—as of January 1, Mr. Markopoulos said “the direction will be determined in the near future. In any case, it is certain that through the dialogue, which has begun and will obviously culminate in the coming weeks, we will have a clear outline.”
