Pelagidis (TE): The financial performance for the next 3 to 5 years

On the resilience of the Greek economy he spoke Deputy Governor of Theodoros Pelagidis in the First Program, according to ERT, stressing that “the objectives of the financial surplus of the primary are assured” for the future. The Deputy Governor of the Bank of Greece said “It seems that we will have a growth rate of about 2.5% for 24, 25, 26. With what is happening now, that half the money each year that is committed, absorbed by the real economy, we will have leftovers for the years 2027 for sure, maybe 2028. So we will have a growth rate of more than twice what is defined for Greece as the growth rate of a long-term trend that is slightly above 1% in the long term. So with a 2.5% by 2027, not to mention a little more, I think there will be what we call business as usual.” While completing “Determining factor in this definitely plays the entire amount of the Fund of Durability and Development. It’s the big sums, not to repeat them, people know them. The NSRF money is added. There is a question of how quickly they will be absorbed, how they will be absorbed, what private investments will be made because the amounts relating to subsidies are, rather well known, where they are headed. They’re public infrastructure investments in fact. So let’s see how things go and what position the Greek economy will find itself in.” The Deputy Governor of the Bank of Greece pointed out, due to his experience last May and June as Minister of Finance, that in terms of fiscal stability, he found that “this time the budget is well built”. The controls are continuous, he noted, “a number of factors within the ministry that mainly concern accounting, not only, have very good specifications.” “In fact, very positive results will be announced for 2023 and 2024, 2025 and then it seems that the objectives of the primary budget surplus are guaranteed according to the economic growth that I have already said which will be,” stressed Mr Pelagidis. “At the moment I cannot see personally as an economist, as a professor no risk relating to fiscal matters. Tax revenue is going very well. Of course, it is the economy that is going quite well, but in any case the performance of the budget is locked. It’s a square where things are locked up,” he said features. Asked whether a reduction in VAT is possible, Mr Pelagidis said that the impact of each move should always be analysed. “Obviously all of us, we liberal economists are in favour of reducing taxes but of course one must make an assessment of what the effects of such a move will be. If we do have to measure the consequences, it is also important to understand that a large part comes from tourism and, above all, from foreign citizens who enter the country and spend. We definitely want, without damaging tourism, the state’s revenue to be significant from there and to continue to be significant. There are many ideas how vulnerable households can be helped,” said Mr Pelagidis. “It is not a matter that can easily be said, I reduce taxes and VAT in a way that is fast and direct and not, of course, horizontal. I think that no one is putting itself in such a situation, because this is something that is basically progressive, that is to say, in favour of the well-being in a sector that does not need to be strengthened, not for political reasons, but for economic efficiency reasons,” Mr Pelagidis noted. Source: ERT