The new omnibus bill submitted by the Ministry of National Economy and Finance is moving forward, introducing radical changes that affect the daily lives of the majority of citizens. As Deputy Minister George Kotsiras explains in an interview with the newspaper Political, the new institutional framework incorporates permanent and emergency support measures totaling 800 million euros, made possible by the positive performance of the Greek economy. The main pillars of the government’s initiative focus on supporting families, renters, and retirees, while also introducing key provisions for private debt relief.
Despite international uncertainty and inflationary pressures fueled by the volatile situation in the Middle East, Greece is demonstrating increased resilience, with growth rates double the European average. Mr. Kotsiras presents the economic team’s priorities for the coming period, the fiscal targets ahead of the Thessaloniki International Fair (TIF), as well as the plan for the digital transformation of the Independent Authority for Public Revenue (IAPR) aimed at combating tax evasion.
The new omnibus bill from the Ministry of National Economy and Finance essentially creates a new framework that affects nearly all citizens. What are its main pillars, and how does it incorporate the 800 million euro support measures?
The new bill we will soon submit to Parliament incorporates the majority of the emergency and permanent support measures, totaling approximately 800 million euros, that we have announced. These measures are made possible by the economy’s strong performance and address the increased needs of citizens.
Particular emphasis is placed on supporting families, renters, and retirees. Following the significant tax cuts for working parents introduced by the tax reform, a one-time payment of 150 euros per child is being established, with expanded income eligibility criteria. At the same time, the rent reimbursement program is being expanded to now cover approximately 85% of renters, while a two-month rent reimbursement is provided for doctors, teachers, and nurses who work far from their place of residence. The subsidy for low-income pensioners and people with disabilities is increasing from 250 to 300 euros, and the pool of eligible recipients is being expanded to cover 85% of pensioners over the age of 65.
What changes does the bill bring regarding private debt relief?
The bill includes three key provisions for addressing private debt. First, it allows for the settlement of debts owed to the tax authorities and social security funds, which became due by December 2023, in up to 72 installments. Second, the option is provided to lift a bank account garnishment by paying off 25% of the debt and settling the remaining obligations. And third, the out-of-court mechanism is expanded to cover debts of 5,000 euros or more.
With these measures, we are giving a second chance to those who are actively striving to meet their obligations and free themselves from the burdens of the past that hinder their economic activity. These are realistic and balanced measures that respond to requests from market participants and are expected to boost liquidity, particularly for the benefit of small and medium-sized enterprises, while preserving the payment culture, which is essential for us to continue supporting society.
The situation in the Middle East remains fluid, and the global repercussions are intensifying. How much is the Greek economy affected?
The crisis in the Middle East is affecting the European economy as a whole, mainly through energy prices and market uncertainty. Greece cannot remain unaffected. However, today our economy is, without a doubt, more resilient than in the past and rests on strong foundations.
Growth remains double the European average, unemployment is moving toward historically low levels, investment is at its highest level in decades, and public debt is declining at the fastest rate globally.
The progress of the past seven years is a collective achievement that we must safeguard by staying the course of reform and strengthening our country’s productive and outward-looking orientation.
Do you believe the time has come to adopt new measures or decide to extend existing ones?
We have already implemented a series of measures that act as a buffer against fuel price fluctuations caused by the energy crisis. These include the fuel pass, subsidies for fertilizers, and subsidies for coastal shipping. The diesel fuel subsidy has a particularly positive impact on the entire supply chain and will be extended into June, as the Prime Minister announced a few days ago.
As Minister Kyriakos Pierrakakis has stated, no one will be left alone in this crisis. We are closely monitoring developments and have demonstrated that, when circumstances require it, we intervene immediately and in a targeted manner.
At this critical juncture, the country’s strong fiscal position gives us greater capacity to support society. This is what we will continue to do: methodically, with moderation, and with prudence, without jeopardizing what we have worked so hard to achieve. Standing by our citizens, with a sense of responsibility for both the present and the future.
The upcoming Thessaloniki International Fair is widely regarded as an extremely important milestone, as it will essentially set the tone for the government’s economic agenda for 2027. There are many scenarios being discussed, including announcements about the return of the 13th-month salary and pensions. How close are they to the truth? What is the fiscal leeway available?
The decisions regarding the measures that Prime Minister Kyriakos Mitsotakis will announce at the upcoming Thessaloniki International Fair will be made responsibly and based on actual fiscal data.
At the last TIF, we announced the largest reduction in direct taxes in recent decades, with a focus on the middle class and young people.
From 2019 to the present, a total of 83 taxes and contributions have been reduced, boosting growth and citizens’ disposable income. We will continue in the same direction, prioritizing the reduction of the tax burden on citizens and businesses, with the goal of achieving real convergence with Europe by 2030.
The country is in an informal pre-election period, which could last nearly a year if the Prime Minister’s statement about serving out the full four-year term is upheld. What are the Ministry of Finance’s priorities during this period, and to what extent is it affected by the heated political debate?
Our priorities remain unchanged: strong growth, boosting incomes, and reforms that substantially improve the daily lives of citizens and businesses.
In the area of tax policy, our primary goal remains reducing the tax burden and establishing a stable and predictable tax framework that enhances legal certainty and serves as a lever for attracting investment. We are constantly adapting the institutional framework to align it with EU legislation and respond to new technological developments, and we promote international tax cooperation and transparency.
We continue to consistently support the digital transformation of the Independent Authority for Public Revenue (IAPR), leveraging modern technological tools, including artificial intelligence. Our goal is the continuous improvement of services for taxpayers, strengthen trust between the state and citizens, and more effectively combat tax evasion and smuggling, using tools such as the digital shipping note, the digital customer database, the Real Estate Ownership and Management Registry, and the new system for monitoring the movement of trucks and containers, which is being installed at customs offices.
Over the past two years, the fight against tax evasion has already yielded approximately 4 billion euros in additional revenue, which has expanded our capacity to support society and boost public investment.
This is our primary goal: to ensure that growth reaches society, translates into tangible benefits for all citizens, and leads to a substantial improvement in the standard of living. We will continue in this direction, with consistency and responsibility, until the end of our four-year term.