New Greek Government Shifts Economic Policy towards investments and tax cuts

New Greek Government Shifts Economic Policy towards investments and tax cuts

On Monday, 22nd July 2019, Greece’s newly-elected conservative government won a confidence vote on its economic policy, which predominantly includes introducing measures to accelerate investments and to proceed with tax cuts (https://www.euronews.com/2019/07/22/greece-s-newly-elected-government-wins-confidence-vote-on-economic-policy) (https://www.reuters.com/article/us-greece-government-vote/greeces-newly-elected-government-wins-confidence-vote-on-economic-policy-idUSKCN1UH2AX).

The new Prime Minister, Kyriakos Mitsotakis, with his New Democracy party, won a landslide victory on the 7th July 2019 (https://www.voanews.com/europe/newly-elected-greek-government-wins-confidence-vote-economic-policy).

They pledged to cut taxes and stimulate growth in an economy that shrank by a quarter during a drawn-out debt crisis.

Mr. Mitsotakis promised to reduce property, income and corporate taxation as well as carrying out reforms on public administration to remove bureaucratic hurdles for investments.

He told lawmakers, ahead of the vote on Monday, “We are going past the era of taxes and poverty to investents and well-paid jobs”, and that “It’s up to us to write our own history, starting today by voting the government’s program statements”.

All 158 lawmakers of the ruling conservative party approved the policy in the 300-seat parliament (https://www.euronews.com/2019/07/22/greece-s-newly-elected-government-wins-confidence-vote-on-economic-policy).

On Saturday, 20th July, while opening the three-day parliamentary debate, on his new conservative government’s policy statement, Mr. Mitsotakis, announced that he would immediately implement a reduction in property taxes (https://federalnewsnetwork.com/government-news/2019/07/new-greek-pm-emphasizes-tax-cuts-jobs-security/).

 The new Prime Minister also declared that Greece’s 2020 budget will show that the country’s “fiscal balance isn’t disrupted nor are the primary surplus targets of the previous government”, and that by achieving the targets for this year and next, the government will have the ability to negotiate with the EU to lower the primary surplus level in the coming years “to a more realistic level” (https://www.bloomberg.com/news/articles/2019-07-20/new-greek-leader-unveils-economic-plan-in-first-policy-speech).

During the parliamentary debate, the Prime Minister identified the loss-making state-controlled Public Power Corp. (PPC), whereby Greece’s Energy Ministry, unveiled on Monday, 22nd July, a plan to overhaul PPC, including voluntary redundancies and selling shares in its distribution network (https://www.voanews.com/europe/newly-elected-greek-government-wins-confidence-vote-economic-policy).

The Development Minister, Mr. Adonis Georgiadis, stated that the government plans to speed up the regulatory process, in order for a long-delayed tourist investment project, at a disused Athens airport, can be launched by the end of the year (http://www.ekathimerini.com/242857/article/ekathimerini/business/greece-to-launch-tourist-investment-project-elliniko-this-year).