Tax evasion long plagued Greece’s economy and contributed to its sovereign debt crisis, pushing the country to the brink of bankruptcy in the 2010s. Today, however, Greece is achieving remarkable success in tackling the shadow economy, according to German newspaper Handelsblatt. Central to this shift is the use of artificial intelligence (AI), says Finance Minister Kyriakos Pierakakis. In an interview, he states that AI-driven tax enforcement aligns with Greece’s broader digital transformation. A key enabler has been the creation of an integrated digital reporting system—electronic invoicing, digital ledgers, and real-time transaction reporting now generate vast volumes of reliable, high-quality data. Leveraging this, the Independent Authority for Public Revenue (IAPR) applies advanced data analytics and AI tools to detect patterns, flag anomalies, and prioritize high-risk cases. Pierakakis—trained in computer science at Athens University of Economics and Business, political science at Harvard, and tech policy at MIT—previously served as Digital Governance Minister, launching the gov.gr platform offering access to 2,500+ state services. Since March 2025, as Finance Minister, he has reaped the benefits of this digital strategy: over the past two years, anti-evasion measures recovered €3.9 billion—funding tax relief for citizens. VAT gap data underscores progress: from 34% in 2017 to just 9% in 2024. The IAPR, established in 2017 and reporting directly to Parliament—not the Finance Ministry—has played a pivotal role in insulating tax administration from political influence and fighting corruption. Pierakakis envisions Greece’s model as a blueprint for Europe’s digital tax ecosystem.
Pierakakis in Handelsblatt: Greece Uses AI to Combat Tax Evasion
—