The priorities of the Greek authorities had been analyzed on the Economist’s twenty eighth Annual Authorities Desk organized in Athens by Finance Minister Kostis Hatzidakis, who participated in a panel with the president of Eurogroup Pascal Donachiou and the CEO of Nationwide Financial institution, Pavlos Mylonas.
Within the 2025 funds Kostis Hatzidakis mentioned there shall be an extra discount in insurance coverage contributions and the abolition of the pretension price. The Minister of Finance mentioned that within the final 5 years, Greece “with out turning into a paradise took vital steps ahead”. “Greater than 400,000 of our fellow residents who didn’t have a job discovered one,” he added for example.
This modification happened resulting from fiscal seriousness and the federal government’s business-friendly angle, he mentioned. On the European stage, he famous that an important issues are: local weather change, immigration, demographics and elevated competitors. On the similar time, he thanked Pascal Donahue, saying that he’s a “pal”.
The place will Kostis Hatzidakis focus?
“As Greece our job is to extend our resilience to shut the injuries of the earlier decade and converge with Europe.” Kostis Hatzidakis additionally referred to the axes on which the Ministry of Finance will focus within the rapid future:
-First, the implementation of the tax reform and the 11 completely different actions to fight tax evasion that are estimated to generate further revenues of two.5 billion euros per yr by 2027 and create fiscal area to cut back taxes.
-Secondly, the completion of the disinvestment of the HFSF from the banks and the creation of the fifth banking pillar. “We are actually engaged on the restructuring of Attica Financial institution. On the similar time, we are going to proceed in 2024 to settle the pending matter in relation to the Nationwide Financial institution and the share of the Greek State in it”, he mentioned.
-Thirdly, the implementation of the legislative interventions which have been introduced and embrace:
- The improve of the Greek capital market by bettering supervision and with initiatives that may make the Inventory Change extra enticing.
- Simplifying the framework and offering incentives for mergers and innovation.
- The reform of the laws on public investments, in order that the framework turns into extra fashionable, in addition to the transformation of the Superfund and its subsidiaries. “At this time many think about the Superfund as a lenders’ fund. It is going to turn out to be a fund that may contribute to growth, with the institution of the brand new Nationwide Growth Fund following the mannequin of different European international locations”, mentioned Mr. Hatzidakis. He additionally famous the reform that shall be promoted alongside the strains of PPC in order that the Superfund’s subsidiaries turn out to be extra fashionable and extra citizen-friendly. The related laws shall be handed in July.
“We imagine that by implementing these reforms we may have the fiscal area to additional scale back taxes. We’ll attempt to full the divestment of the Greek State from the banks and create a fifth banking pillar. We’ll proceed with our legislative agenda in particular areas to enhance the functioning of the capital market by giving the supervisor extra powers to make it extra enticing. Second aim is to simplify the authorized framework for mergers and acquisitions, we have to give incentives to small firms to develop on a voluntary foundation.
“Europe, he added, within the turbulent instances we stay in, should see how one can strengthen its strategic autonomy and competitiveness. And no matter what Europe does, Greece should improve its resilience within the face of challenges and uncertainties by transferring ahead with the federal government’s reform plan.”
Lastly, the minister identified the necessity to instantly promote the Union of capital markets, in order that the funds which are accessible within the EU and at the moment profit third international locations, assist the European financial system.
Credit score to Donahue for the Greek financial system
Pascal Donahue highlighted the efficiency of the Greek financial system in recent times. “The change of the Greek financial system from the improved supervision to now transferring above the m.o. of the EU is certainly a miracle and I wish to acknowledge the contribution of Kostis Hatzidakis and Christos Staikouras earlier than him.”
He emphasised that growth should be a key precedence for the European Union within the coming years. “We succeeded in decreasing inflation. The price of residing remains to be a problem in Eire, Greece and elsewhere. A discount in inflation is one factor and a fall in costs is one other. We prevented the recession, we’ve got to see how we are going to transfer now”, he added.
Talking in regards to the report, Leta mentioned that it displays the unrealized expectations of the European financial system and that we have to unlock the potential of the EU. “It gave us what we want at the moment”, he commented and added that we await the Draghi report. Referring to the current European elections, he acknowledged that the political middle endured and can proceed to have sturdy percentages.
“Lending should be diminished, we count on economies to turn out to be extra digital, they have to turn out to be greener, necessity will drive us to take steps ahead,” he added.
Banking sector
Pavlos Mylonas acknowledged that Greece has for an additional yr outperformed in comparison with the EU, that the restoration is maturing, turning into extra sturdy, with a broader base. “We’re closing the hole with the EU in analysis and growth funding,” he added, however famous that actual convergence with the EU requires extra effort. He additionally emphasised that we’re returning to pre-crisis mortgage approval ranges. Banks have strengthened SMEs and offered steerage to people and buyers to proceed with right investments, whereas main the adoption of ESG guidelines.
“Banks have gone from hell to heaven, capitalization ratios are excessive, liquidity is excessive. We have gotten extra environment friendly and attempting to push clients to turn out to be extra digital. I do not see something on the horizon that may threaten the banks,” he added.
SOURCE: ot.gr
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