Measures to increase workforce, reduce bureaucracy
The economy opens up in sectors that had been abandoned, such as agriculture, with investments of 1-1.5 billion from the Recovery Fund. Photo SHUTTERSTOCK
Irini Chrysoloras
A period of strong growth, driven by investments both from the Recovery Fund and from abroad, the financial staff of the outgoing Greek government believe that the next four years could be, and to this end they are planning interventions to remove the existing investment obstacles and the facilitation of related initiatives.
The interventions are mainly of an institutional nature, with a relatively small fiscal cost, as the new fiscal rules that will apply in the E.U. they do not allow relaxation and tax breaks are no longer at the forefront of priorities. As number one obstacle to the realization, but also the subsequent support, of investments, these executives name the lack of workforce. Thus, they state that incentives will be given or disincentives removed to attract women and young people to the workforce, whose participation is low. Among other things, they state that, in this direction, a rationalization of the allowances is planned, so that they do not constitute a disincentive to work, but also interventions to improve working conditions and to orientate technical education in sectors that are in demand.
The further digitization of the state is also a priority, which is even connected to the transition from the “black” to the “white” economy, as they say.
Tax Evasion
On the tax evasion front, the situation remains uncontrolled and government officials argue that emphasis will be placed on three steps that they believe will bring significant results: after the connection of the POS with the cash registers and with the AADE electronic systems, the next step is the establishment of the electronic shipping slip online, with funding from the Recovery Fund, and then the electronic invoice, which is already progressing in the public sector and will be extended to the private sector as well. Other tools will be sought to control tax evasion among freelancers, the same executives note. The main goal of the next four years is, moreover, to increase the average size of the Greek business, something to which it is estimated that the control of tax evasion and additional tools that will be developed will contribute.
The government's goal is to annual investment to reach 22% of GDP, from around 15% today. This, of course, assumes an annual investment growth rate of 15%-20% to be achieved in four years.
Executives of the late economic staff argue that the country is an attractive destination for investors for geopolitical reasons, but also because of political stability and the fact that it has one of the most reformist governments in the EU. They note that the economy is already opening up in sectors that had been abandoned, such as agriculture, with investments of 1-1.5 billion from the Recovery Fund, while tourism is changing its face by turning to the quality, duration and supply of permanent residence.
In energy, the same sources continue, a number of large investments are expected and the country will no longer be dependent on imports, especially as the storage sector will develop, with batteries. They also note that a renaissance of industry is gradually being observed, led by the pharmaceutical industry, as well as shipyards, while there is a flourishing of technology startups and film productions (for which, however, the incentives that have been given will be rationalized).
They also consider that the real estate sector has changed in character compared to the past, as some of them are more investment-oriented and aimed at non-residents.
