Prime Minister Kyriakos Mitsotakis addressed issues related to the economy and the labor market during a press conference he gave on Monday afternoon.

Watch the press conference:

“Our first concern is accuracy in eating”

The first questions the Prime Minister received were about accuracya problem that, as he himself admitted, worries Greek society today more than anything else.

“We are facing the biggest spike in inflation in 40 years as a result of the Russian invasion of Ukraine and a sharp rise in fuel prices,” he said.

As he said first concern government is food inflation. Mr. Mitsotakis mentioned the measures that the government has taken and will take on the issue of accuracy in general, such as the recent reduction in electricity prices, the household basket, the Market Pass, and the horizontal controls that are being carried out in the market for obscene profit.

Regarding food prices, he added that ELSTAT data show de-escalation and proceeded to assess that the worst is over. “We will see a further slowdown in food inflation until we have nasty surprises in the energy sector. We’ve seen the worst in terms of price increases on the shelves,” he said.

“Window” for permanent reduction of indirect taxes

Asked about a possible future reduction of indirect taxesKyriakos Mitsotakis said that he did not intend to talk today about New Democracy’s commitments for the next four years, but noted that the de-escalation of these taxes could be discussed in the context of fiscal options and budgetary possibilities.

At the same time, he stated against temporary reduction indirect taxes on temporary issues such as punctuality in eating. According to the Prime Minister, countries that implemented such measures were deprived of public revenues, and ultimately the reduction did not reach the consumer, as it was lost in the production chain.

However, he mentioned that doesn’t think it’s unlikely reduce indirect taxes in the next four years. If this is done, this reduction will have permanent features and will not jeopardize the country’s fiscal stability.

In a question about him minimal salaryMr. Mitsotakis noted that the increase will take place from April 1, this is not related to the date of the elections, but will happen because it is then tourist season and as you know, many Greeks work in the field of tourism.

“We are not interested in offering young people any kind of work. We want them to be stable and pay higher wages, and so we have set up incentives that businesses can take full advantage of,” he said.

For the performance of our country in unemployment among women and youth 18-25 years old, the prime minister acknowledged that Greece is starting from a higher base, but also showing a larger decline compared to the EU average. (a decrease of 29.8% for women and 17.5% for young people).

On the issue of pensions and fiscal space to be established this year, Mr Mitsotakis said it was too early for such a discussion and urged citizens to “take a step back” and reflect on the interventions already made.

Investment level and elections

To her question “Daily” and Stavros Papantoniou for investment gradeKyriakos Mitsotakis replied that our country has 11 upgrades and has reached them by one step, noting that he considers it absolutely possible to do during 2023.

“Of course, investment houses and markets are waiting to see what happens in the elections. We can say with confidence that in a few months after the re-election of our government, the investment level will be reached. I wonder if our political opponents can say the same? However, if there is long-term instability after the elections, which I do not think is likely, or if the government follows a different program, then we will not even see an investment level,” he said.

An increase in the investment rating practically means a reduction in the cost of borrowing for the population and business, the prime minister emphasized, which is important in connection with the increase in ECB interest rates.

“I want to emphasize that under no circumstances should the improvement of the country’s image abroad make us think that there are no problems in the Greek economy. There is accuracy and some of our fellow citizens who are fighting,” he said.

Energy and competitiveness

Speaking about energy, he said that most of the oil and gas produced today will be produced from green energy in the future.

Regarding the competitiveness of the Greek economy, he stressed that there has been a significant improvement, but there are problems, adding that a decade has actually been lost because we have experienced an unprecedented crisis.

He also stressed that over the four-year period 2015-2019, the Greek economy grew by an average of 0.5%, while Europe grew by 2%. “A quarter of EU average growth”. he noted, adding that we are now eliminating this discrepancy.

He pointed out that delays in the administration of justice were holding back the country in terms of economic competitiveness, but added that the Greek economy was much more open and competitive compared to previous years, with the country making better use of its comparative advantages. According to him, all this is certified by international houses and analysts.

Comparing the picture he received this year in Davos with 2020, he said that there was then a theoretical interest in Greece, and today most of the doubts no longer exist. According to him, measurable work remains to be done.

39 billion in cash – Tsipras’ “cushion” from rampant taxation

Asked about cash reserves, he said they currently stand at 39 billion euros, while stressing that “Mr Tsipras should not be particularly proud of this “cushion” received from heavy taxation and coercion by creditors.”

The Prime Minister spoke about the improvement in tax legislation compared to a few years ago, noting that important steps have been taken in the field of tax evasion, adding that the better the likelihood of crossing the border, the less tax evasion will be.

Household support

Mr. Mitsotakis stressed that the government’s policy is to support the society in extremely difficult conditions. The government took the risk of a temporary increase in public debt to support households and businesses during the pandemic, he said. The Prime Minister noted that the measures taken were effective, stressing that “we did absolutely the right thing” and adding that the development in the economy confirms the government’s policy, which is confirmed by the markets.

The Prime Minister said that today no one talks about the problem in systemically important banks, which, as he noted, have the opportunity to reduce commissions and raise deposit rates.

Regarding hydrocarbon exploration, he said that the sites put up for natural gas auctions are known, and during 2023 there will be a first picture of whether there are positive signals.

New civil servants payroll in 2024 – we intend to reduce employers’ contributions

The Prime Minister noted that the government’s intention is to reduce employers’ contributions, while noting that in February there will be a clearer picture of budget execution. As he clarified, when the goals are achieved, you can take action.

Speaking of private sector wage increases, he said businesses could do other things with other benefits.

As for the public sector, he said that in 2024 we will have a new wage fund for civil servants.

The Prime Minister also stressed that we are at the beginning of the process of reversing the brain drain. He stressed the need for a European response to protect the competitiveness of European businesses.

The Prime Minister noted that Greek companies have relatively fewer loans compared to European ones.

“If someone has a magic formula for fighting inflation, tell me,” he stressed, while noting that “money trees do not exist.”