Greece is stronger than ever before, stated Minister of National Economy and Finance, Kostis Hatzidakis, during his speech at the Economist’s ’29th Annual Government Roundtable – Walking steadily across a tightrope of uncertainty’. He highlighted Greece’s economic improvements such as a primary surplus of 4.8% and growth of 2.3%. The minister emphasized that financial stability and technological progress have significantly helped combat tax evasion.
Reflecting on the country’s GDP surplus, Pirrakakis noted that a decade ago Greece faced capital controls, adding that overcoming those challenges was nothing short of a miracle. He praised the perseverance and patience of the Greek people. He also outlined a strategy for strengthening the economy, stating that although many challenges remain, they are surmountable.
The minister presented a strategic plan involving three national and one European-level priorities. At the European level, he stressed the need to overcome trade barriers and advance European integration. Nationally, efforts focus on reducing bureaucracy, promoting national champions in sectors like education, and accelerating privatizations through the Hellenic Republic Asset Development Fund (HRADF).
When asked about removing obstacles to investment inflows, Pirrakakis pointed out that the old Greek economic model relied too heavily on non-commercial sectors and consumption. He noted that exports as a percentage of GDP increased from 10% in 2019 to 42% today, while the EU average stands at 51%. He expressed confidence that Greece could reach 60% with continued effort toward building a new economic model.
Investments as a percentage of GDP rose from 11% in 2019 to 15%, compared to the EU average of 21%. He emphasized that the Recovery Fund should align investments with reforms to achieve a multiplier effect in the years ahead.
Pirrakakis also praised Greece’s 5G auction, noting that 27% of revenues will fund the national 5G development plan worth €100 million, which the Commission hailed as the best in Europe. He also referenced the government’s MITOS platform, which digitized 2,000 of the 5,500 services provided by the state through Gov.gr. He concluded by supporting further business consolidation through mergers and acquisitions.