Theodorikos: Reforms of simplification of economic activity against bureaucracy – Motivations for research and innovation and business mergers

The convergence of Greek incomes and the level of life with the European average is at the heart of the government’s interest, according to what the Minister of Development, Takis Theodorikos, said today (16.9.2024), at the press conference on the specialisation of ITH support measures. At the press conference attended by Mr Theodorikos, the measures to support entrepreneurship and the productivity of businesses in the primary sector, processing and tourism were specified. It is noted that at the press conference held in the interview room of the General Secretariat of Communication and Information, he was also the Minister of National Economy and Finance, Kostis Hatzidakis, the Minister of Rural Development and Food, Konstantinos Tsiaras and the Minister of Tourism, Olga Kefalogiannis, the Deputy Minister of National Economy and Finance, Nikos Papathanasis, as well as the Government Representative, Paul Marinakis. The specialization of the measures of the Ministry of Development by Mr Theodorikos: The main objective of the government for the next few years is the convergence of the incomes and living standards of Greeks with the European average, as well as the reduction of social and regional inequalities within our country. The necessary condition for achieving this objective is the formulation and implementation of a new productive model for our country, following reforms made by the government. The Ministry of Development is jointly preparing more concrete initiatives for this purpose over the next period with the productive bodies. Today we are specifying the important decisions and initiatives announced by the Prime Minister and which contribute to sustainable economic growth, improving the competitiveness of Greek enterprises and social cohesion. Measures and policies of the Ministry of Development Specialisation of the national strategy to strengthen the modern Greek industry Reform strategy to reduce bureaucracy Extension of incentives for innovation, mergers and acquisitions Golden VISA for investment in new-born enterprises National strategy to strengthen modern Greek industry The formation and implementation of a new productive model for our country goes through the even greater upgrading of the role of modern Greek industry, both in the production of the country’s GDP and in the employment sector. This is a national necessity, but it is coming to be associated with the main conclusions of the Dragi report on the EU, to strengthen Europe’s competitiveness, to support and strengthen investment in industry, to link industry directly to research and innovation and to address the crucial problem of the energy costs of businesses. The aim of the national strategy is to strengthen the productivity of Greek enterprises, strengthen exports to the industrial sector and implement a development plan in a number of critical areas such as: Examples: Agro-food sector that produces final products Pharmaceutical industry and cutting-edge biotechnology Metals, construction materials and building equipment for the green cities of the future Production of renewable energy equipment and energy saving Shipbuilding Software applications, artificial intelligence and digital economy Defence industry and robotic research and development units of multinational companies For this purpose, the Ministry of Development in the next two months approves a funding of EUR 170 million for private investments related to these sectors and also contribute to the green transformation of the RRF resource economy. There is also a digital transition programme for small and medium-sized enterprises with 85m euros and an industrial park upgrading programme funded by the Recovery Fund. It has a total budget of EUR 90.4 million, aimed at encouraging the creation and development of green innovative business parks. A strategy to reduce bureaucracy The aim is to reduce within two years at least 25% of the administrative bureaucratic burden for export companies Abolition of 15 time-consuming bureaucratic procedures aimed at reducing the administrative burden by 25%, particularly in our export companies. The Ministry of Development implements a plan to reduce bureaucracy in the state’s most time-consuming and cost-effective administrative procedures in two ways: With a strict measurement methodology With the abolition of unnecessary procedures Expansion of incentives for innovation, mergers and acquisitions The basic condition for our economy to continue its upward path is to make a qualitative leap, with emphasis on the production of high added value products and services, innovation and extroversion. A necessary treaty to achieve this is for Greek companies to grow. Because the larger companies are more competitive at international level, they offer more quality and better paid jobs and have increased capacity to invest and innovate. New cases of increased rates of deduction are introduced from gross income of enterprises, currently 200 %, for scientific and technological research costs that are set at: – 250% for startups cooperation projects and research centres – 300% for knowledge-intensive SMEs (R&D expenditure > 20%) – 315% for knowledge-intensive SMEs if they exceed the MOU of the corresponding costs of the previous 2 years. The incentive for commercial exploitation of patents (patents) is extended. – The new regulation introduces a 10% reduction in income tax for an additional 7 years after the end of the three-year period. Tax incentives for angel investors are extended. -Today there is a discount from taxable taxpayer income – investor, 50% of the capital contributed to startups registered companies of the National Register of New Entrepreneurs and up to 300,000 euros. With the new regulation the ceiling is increased to EUR 900,000. The minimum share capital threshold of the new company resulting from cooperation/transformation to EUR 100,000 from EUR 125,000 is reduced to 30% tax exemption on profits. The possibility of transferring tax damage to transformed enterprises is established. Financial costs based on existing business are estimated at EUR 40 million per year, but multiple benefits are expected in the real economy. It is recalled that significant investment incentives have been applied since 2024 including: The reduction in capital raising tax from 0.5% to 0.2% at an annual cost of 22m euros. The 50% reduction in the share tax at an annual cost of EUR 21 million. The abolition of the interest tax on government bonds at an annual cost of EUR 7 million. Golden VISA for investment in start-ups As of April 2024 the criteria for granting Golden Visa were further tightened. The possibility of granting a Golden visa for a capital injection amounting to at least EUR 400,000 already applies to a company based or located in Greece. This institution is expanding, focusing on startup operations. More specifically: – From 1.1.2025 a residence permit will be granted in the form of gold visa for an investment amount of two hundred fifty thousand (250,000) in a startup business, a member of the National Register of New Generation Enterprises (Elevate Greece).