The government is planning a new round of incentives for business mergers. Deputy Prime Minister Kostis Hatzidakis announced the plan, linking the creation of larger corporate groups with the goal of increasing investment from €45 billion to €65 billion.
Speaking yesterday, Monday, at an event marking five years of IDEAL Holdings in the Greek market, Mr Hatzidakis outlined the economic policy priorities through to 2030 against a backdrop of rising international uncertainty.
The deputy prime minister acknowledged that energy pressures require measures to support the public, but warned of the risks of slipping into populism. “On the one hand, there is obviously callousness. You cannot be callous and indifferent. On the other, there is the mistake we have made many times in Greece: populism,” he said, stressing that the answer lies in “seriousness, with the necessary sensitivity, of course”.
He said the government was seeking to safeguard the progress made in recent years and would use all available scope to provide support, while also looking for solutions at European level.
He made particular reference to pressure in the bond market, noting that international uncertainty was not confined to the energy sector. He spoke of “a kind of crisis” in the bond market, expressing hope that the situation would not deteriorate further.
“Our aim is to pick up the pace from here on, but without having any illusions,” he said, making clear that the government had no “magic button” it could press to make international crises disappear.
The government's reform agenda
Growing the scale of Greek businesses is a key pillar of the government’s strategy. “We are, by far, the country with the most small businesses. We are proud of that. It reflects the entrepreneurial spirit of the Greeks. But there can be too much of a good thing,” he said.
The deputy prime minister announced further measures, without specifying their content or timing. “Economists of all stripes, on the right and the left, recognise that size matters here too. We have offered incentives for mergers twice; we will offer more,” he said.
Mr Hatzidakis reiterated the goal of raising investment to €65 billion, noting that it had already increased by 100% since 2019.
Mobilising domestic and foreign investors, alongside boosting productivity, is the next challenge for the Greek economy. “One is competitiveness and the second is productivity,” he said, describing the two as crucial to sustaining growth and creating jobs.
As part of its reform agenda, the government is prioritising faster delivery of justice, completion of the land registry and spatial planning — three areas that have a direct impact on the business environment.
According to Mr Hatzidakis, the time taken to hear cases at the Athens Court of First Instance has fallen by 50%, while the aim is to bring it into line with the European average by 2027.
The government’s agenda also includes completing local and special spatial plans, removing obstacles to investment in industry, tourism and renewable energy, and artificial intelligence. “If we fail to make use of it, we will have a major problem, particularly for the small and medium-sized business sector,” he warned, referring to AI.
Mr Hatzidakis called for a state that cuts red tape, maintains fiscal stability and facilitates private enterprise, rather than engaging in business activity itself.
“The state should no longer act as an entrepreneur, run hotels or pretend it can do things better than the private sector,” he said. He cited the addition of around 60,000 to 70,000 jobs in industry in recent years as evidence of the potential for further growth, concluding that Greece needs “many IDEAL Holdings”.