Kyriakos Mitsotakis: The budget of 2025 has a social significance with positive interventions for citizens and businesses

In the weekly account of government work the prime minister refers to the state 2025 to be discussed in Parliament’s plenary 11-15 December stressing that “it is a budget with a social mark, with permanent, positive interventions for citizens and businesses being increased by 1.1 billion euros in relation to the 2024 budget.” As Kyriakos Mitsotakis says in his post, the budget includes 12 wage increases and 12 tax reductions, predicts growth 2.3% – significantly higher for another year of the EU average – settles further public debt promotes institutional measures focusing on strengthening investment and innovation, tackling demographic and housing issues, spending on National Defence, as well as tackling climate change challenges.” The Prime Minister stresses that he is a budget responsible, almost balanced. “Sense financial management secured a greater primary surplus of 2.5% of GDP (6 billion euros) than 2.1% of GDP (5 billion euros) originally calculated. The reduction in tax evasion combined with the increase in wages and the reduction in unemployment led to an increase in total tax revenue in 2024 by EUR 3.7 billion far above our target (EUR 66,7 billion versus EUR 63 billion the target). This money has already returned to society by increasing public investment in critical infrastructure projects, strengthening health, education and supporting the weakest,” he notes. The prime minister also refers to the rapid de-escalation of debt by saying: “In December the new early repayment of loans of €7.9 billion from the first memorandum will be completed and within 2025 – except unexpectedly – we will pay another €5 billion to repay loans planned to expire between 2033 and 2042. This means that debt next year will decline to 147.5% of GDP, at the lowest level since the start of the crisis in 2010.” Moreover, it stresses that Greece is now a serious investment destination for large foreign investors, and this is confirmed, as it says, by both new major foreign direct investment by multinational giants to be carried out. “The first investment is from French Data4, which will build a data center campus in Paiania, with an investment of 300m euros, which is expected to work in 2027” he notes. “The second major investment is the three new large-scale wind parks that Amazon will create in Northern Greece, which are expected to be completed in the next two years, using resources from the Recovery Fund,” he adds. Finally, the Prime Minister notes that the election lists have been cleared, a process that is first being carried out in our country so that there is a real representation of the electorate and therefore an accurate determination of the participation and abstention of the voters in each election process. ‘The clearance of lists, now easier due to the digitisation and interoperability of public registers, will contribute to the better functioning of the state. And to catch the suspicious, no, there is no possibility of early elections. The next national elections will take place in 2027, which means we have two and a half years of clean political time to implement our commitments,” he says. The post of Kyriakos Mitsotakis Good morning to everyone. Last Sunday in November and as we approach December, two things are happening: first, Christmas is approaching. And second, we’re talking about the state budget! So with him I will begin, as the final draft of the state budget of 2025 was submitted, with provisions that make our economy stronger and more durable in the troubled times we live in. I will not bore you with many numbers, and there will be an extensive analysis during the debate in plenary from 11 to 15 December – here we will be. I will only point out the following: it is a budget with a social sign, with permanent, positive interventions for citizens and businesses being increased by EUR 1.1 billion in relation to the 2024 budget. It includes 12 wage increases and 12 tax reductions, predicts growth 2.3% – significantly higher for another year of the EU average – further domesticates public debt – I will say more about it – promotes institutional measures focusing on strengthening investment and innovation, tackling the demographic and housing issue, spending on National Defence, and tackling the challenges of climate change. He’s a budget officer, almost balanced! The prudent financial management ensured a greater primary surplus of 2.5% of GDP (EUR 6 billion) compared to 2.1% of GDP (5 billion euros) originally calculated. The reduction in tax evasion combined with the increase in wages and the reduction in unemployment led to an increase in total tax revenue in 2024 by EUR 3.7 billion far above our target (EUR 66,7 billion versus EUR 63 billion the target). This money has already returned to society by increasing public investment in critical infrastructure projects, strengthening health, education and supporting the weakest. Spectacular are the results in reducing the VAT gap (from 29.1% in 2017 fell below 14%, with the aim of reducing to European levels, to 9% by the end of 2027). These performances prove that the digital tools developed – such as the POS-fund interface and myDATA platform – to limit tax evasion work. In 2025 this effort will be intensified with new tools and services (i.e. the digital clientele, the extension of the electronic invoice, the digital shipping bulletin, interoperability with the Land Register, etc.) that will complete this major tax reform, which has at its core justice. More modernisation of tax administration means greater tax and social justice, better service to the citizen and of course greater room for further tax reductions. I will stand, as I told you, for the rapid deescalation of debt. In December the new early repayment of loans of €7.9 billion from the first memorandum will be completed and within 2025 – apart from unexpected – we will pay another €5 billion for the repayment of loans planned to expire between 2033 and 2042. This means that debt next year will fall to 147.5 % of GDP, at the lowest level since the start of the crisis in 2010. The rapid reduction in public debt also goes to the government’s lending rates, but also to the private sector, that is, businesses, and households. And smaller loan rates mean more investment, greater employment and higher wages. In closing, I want to say that I know that households do not yet feel in their everyday lives this good course of economy. The wave of accumulated inflation rocked, as in other countries, an important part of the increases we achieved in incomes. Rent and electricity push the family budget. But we are implementing policies for cheaper housing and more competition in the energy market. And increases in wages and pensions are permanent, while inflation is transient – and already significantly lower than the previous period. With domesticated public finances, pro-investment reforms, job support, reduction in bureaucracy, digitization of the state, increased productivity, and more efficient competition, we create an economy day by day that offers more opportunities and better wages for all. We are on the right track and with hard work, patience and perseverance we will reduce the distance between us and European incomes. On Friday I met with the residents of the apartment building on Arcadia Street in Abelokipoi damaged by the explosion of the improvised mechanism in the 4th floor apartment. The building, based on TEU estimates, is not residential in its entirety and its restoration will take about a year. Under state aid, 29 of our fellow citizens are temporarily hosted in a hotel, where they will remain until the beginning of the new year. They will then be able to choose whether to stay for free at the military camps of Saint Andrew until March 2025 or receive the special housing allowance we will establish for those who have no accommodation alternative. At the same time, with the sponsorship of the construction company TERNA, which we warmly thank, there will be a complete restoration of the building’s stability, so that it can be repopulated. Also, whoever and any of the tenants wishes to do so will be provided free psychological support. We are timeless and clear against the phenomenon of terrorism and terrorist perpetrators. We support their victims and those who are harmed by their detestable actions. I continue with the regional cohesion issues, with particular emphasis on Evros, which is a special priority for us. Our project for the region is reinforced by 3 new actions by the Public Employment Service with a total budget of EUR 18.5 million, to create 600 new jobs, in which unemployed people of all ages can join. The first action concerns the recruitment of unemployed persons in full-time jobs, with a grant of up to 75% of wages and contributions, for up to 18 months, and is addressed to all companies in the Evros Regional Unit. The second allows 200 unemployed of all ages to create their own business, with a subsidy of EUR 14,800 per company for 12 months. The third concerns 200 unemployed 18-30 years of age, giving them the opportunity to gain professional experience in dealing with the consequences of climate change. DYPA will pay directly the minimum wage (with full insurance contributions), as well as a proportion of holiday and leave allowance gifts. Greece is now a serious investment destination for large foreign investors, and this is confirmed by both new major foreign direct investments by multinational giants to be made. The first investment is from French Data4, which will build a data center campus in Paiania, with an investment of 300m euros, which is expected to operate in 2027. This project is part of a wider investment programme of EUR 7 billion by 2030. Greece’s choice was based on its two comparative advantages: its geographical location, which brings it close to the Middle East and Asia, as well as access to cheap, clean energy from renewable sources, necessary for energy-intensive data centers. The second major investment is the three new large-scale wind parks that Amazon will create in northern Greece, which are expected to be completed in the next two years, using resources from the Recovery Fund. This is an investment of EUR 1 billion, which will contribute to the national objective of increasing the proportion of our electricity generated from RES to over 80% by 2030 – and we may overcome it. Opposition to RES, directly linked to our energy self-sufficiency and autonomy and to lower current prices, is ultimately an act that does not serve the national interest. And it is politically interesting that it is expressed primarily by parties that usually appear as superpatriots. By the way, you can be informed in real time about the volume of energy produced by all RES in each region and regional unit of the country, through the new application https://apps.deddie.gr/apedata/ the TENDE. One of the changes we need to make today to build tomorrow better is the coalification fund of our islands, which I spoke about Thursday in Naxos, one of the islands of the Cycladic archipelago that we want to ‘green’. This Fund is essentially a large piggy bank that will gradually be filled next year with money from industry and other sectors in countering pollution caused. We estimate that these funds will exceed EUR 1.6 billion, depending on the variation in pollutant prices and the mobilisation of private resources. But what does this mean in practice for the inhabitants? Current without interruption or voltage fluctuations, cheap and clean for households and businesses from wind, sun and sea and away from polluting and expensive oil. The photovoltaics, wind and hydroelectrics that will be created—depending on the capacity of each island—and financed by this Fund will not only give electricity to the houses, hotels, shops and public buildings, but will also supply estates—especially important for micro-cultures—and local dams to deal with water shortages. In some ports, too, ship charging stations will be created, as the next day of the ferry will be electrified. An additional 1,000 charger network will spread to boost electric vehicles. Almost 2/3 of the total resources of the new Fund will be directed at the islands’ connections to the National Energy Transmission System. At the same time, all Greeks will benefit, as their accounts will eliminate the fees relating to the electrification of the islands. But also the country as a whole, since the reduced production costs of the products will also bring down their prices. The coalification of the islands will therefore be the key to their development, providing cheaper electricity, strengthening tourism and protecting the environment and atmosphere. We have news about the 2021-2027 Fair Development Transition Programme implemented in Western Greece and in areas where lignite power plants were operating. The financing of six investment projects by large enterprises and 676 investment projects by existing or new, very small and small enterprises was approved. The budget for these latter is around EUR 57.7 million, of which around EUR 40.2 million will be the grant to be granted by the Programme. A total of 1,685 jobs will be created, and with the inclusion of additional investment projects for small and medium-sized enterprises, further 2,300 new jobs will be created. From one end of Greece to another. We are proud that our criticism Tilos won the first European ‘Just Go Zero’ award as a model for solid waste management. The nominations were 420 and the Greek island passed into the final trinity along with Austria and the Netherlands. However, Tilos’ pioneering waste management program not only highlighted it first in its category, but also gave it the award of the winner of all winners, the “Great Prize of the Jury Committee”, with the Commission representative admiring the achievement of the little Tilos. From the environment I pass on the very important bill of the Ministry of Health tabled in the House, which provides incentives to attract doctors and dentists to health structures in the so-called barren and problematic areas. We are significantly increasing economic incentives, while also providing institutional incentives. What are these? Their transfer after 3 years of service in these areas, instead of 5 that have been so far, the most favorable calculation of their service for faster growth to the next degree, the increase of the additional days of training leave for their scientific development and the ability to associate civil administrators who are spouses or partners with the doctors of the NSS. However, with the financial incentives we had introduced in the summer, we managed to cover 201 of the 293 vacancies I had. We proceed immediately to re-nomination of the remaining 92 empty organic positions and we believe that in the first quarter of 2025 we will cover them. As the Minister of Health rightly says, “as many people see problems constantly, we find solutions.” Next issue of today’s review, the “Gigabit Voucher” project, a total budget of EUR 80 million with funding from the Recovery Fund and a Public Investment Programme. At least 379 thousand households and small and medium-sized enterprises gain access to speed connections of at least 250 Mbps. The beneficiaries shall be provided with a voucher worth EUR 200 covering part of the costs of the initial connection and assistance for 24 months. Applications shall be submitted to the platform https://gigabit-voucher.gov.gr/go-beyond/. Beneficiaries should not be subject to income criteria but should not already have a link at a speed of more than 100 Mbps and at the same time reside or operate in the areas covered by the programme. Despite Greece’s lack of telecommunications infrastructure, our country is making significant progress. From zero availability of fiber optic networks in 2019, today we have reached 50% coverage, aiming 60% by 2025. Investments by private providers are expected to exceed EUR 4 billion over the next two years, with the aim of creating more than 6 million new lines, raising coverage to 80% by 2028, very close to achieving the objective set by the European Digital Decade 2030 strategy for universal availability of high-speed networks. Two more “digital” news. I start with the most useful. Writing a responsible statement through gov.gr is even easier, as we will now be able to dictate to the personal assistant AI the text we want and with a click to have it filled on our screen. Type two, the Conventions for Axis 3 of the National Micro-Secretary Program were signed, namely the development of a Government Node for the processing and disposal of satellite data. You may be wondering what this will do us. In short, specialised services and products will be provided through this system in five different areas: agriculture, forests, water, land and safety. As I have mentioned before, the implementation of the programme will be done by Greek companies which mean jobs with growth prospects. Within the week it was World Day against Child Abuse, a scourge with many causes often hiding behind closed house doors, seemingly above suspicion. Child abuse constantly changes personalities, often exploiting the anonymity provided by technology. We cannot – unfortunately – completely eliminate the phenomenon, but we are making every effort to contain it. I am making a brief account of our initiatives. First of all, we have moved on to a clear definition of child abuse by ensuring that the framework for dealing with the phenomenon is clear and effective, we have strengthened de-establishment, we have established the White Criminal Register as a prerequisite for working with children, we have supported special structures for abused children and we have put into operation the free line 1107 and the new Safe Youth app. We will continue to take all appropriate measures to protect our children from all forms of abuse. Last item for today: The election lists have been cleared, a process that is first being carried out in our country so that there is a real representation of the electorate and therefore an accurate determination of the participation and abstention of the voters in each election process. Clearing lists, now easier due to the digitisation and interoperability of public registers, will contribute to the better functioning of the state. And to catch up with the suspicious, there is no possibility of early elections. The next national elections will take place in 2027, which means we have two and a half years of clean political time to implement our commitments. I’ll leave you here somewhere. See you next Sunday, where I will have my impressions from the new Metro of Thessaloniki. Good Sunday!