Deputy Prime Minister Kostis Hatzidakis set out five key pillars of industrial policy addressing concerns raised by the manufacturing sector. He was speaking at an event hosted by the Federation of Industries of Greece in Athens this evening on the theme “The Competitiveness of Industry”.
Kostis Hatzidakis stressed the need to focus on competitiveness and entrepreneurship, saying he wished “all political forces agreed, since some believe there can be workers without businesses”. He noted the progress made by industry in Greece, highlighting that its share of gross value added rose from 13.8% in 2019 to 15.8% in 2025 and that the sector had created more than 60,000 new jobs. Goods exports have risen by 50% since 2019, reaching 48 billion in 2025.
“This progress is due, first and foremost, to businesses that invest and take risks, and to the workers who support production every day. But it is also the result of the economic policy we have consistently pursued for seven years: a policy based on fiscal responsibility, tax cuts, support for investment and reforms,” he said.
He noted, however, that there was still significant ground to make up, and outlined five pillars of planned initiatives:
1. Energy costs
“We know how much they weigh on industry, particularly energy-intensive businesses. It is, after all, a Europe-wide problem,” the Deputy Prime Minister said. He recalled government initiatives to reduce energy costs worth 500 million over the next five years, plus a further 95 million announced last month. “We will continue to support Greek businesses, while respecting our fiscal headroom and European rules. That is why we are calling for greater flexibility in the application of the Stability Pact,” he said. New initiatives to help businesses save energy have also been launched or announced, while long-term measures to cut energy costs by 30% are being rolled out.
2. The business environment
Kostis Hatzidakis recalled tax cuts for individuals and businesses, the streamlining of licensing procedures and the digitalisation of the state. “We will continue in the same direction, focusing on two areas. First, speeding up the justice system. The new judicial map has halved the time taken for first-instance court rulings. The goal for the next four years is to converge with the European average time for cases to be heard. Second, spatial planning, through Local and Special Spatial Plans and a new regulatory framework for industrial parks.”
3. Financing investment
“Claims that European funding will be drastically reduced in the coming years do not reflect reality. There is, of course, a difficult negotiation under way on the new European budget. But, based on the proposals on the table, the amount we receive will once again be substantial,” the Deputy Prime Minister said. He also urged businesses to work with universities and research centres to secure funding from the new Competitiveness Fund. He stressed that, important as public investment is, the real challenge is mobilising private capital. “The clean-up of the banking system and the upgrading of the Greek stock market have laid the foundations for investors to access financing more easily.”
4. Technology and skills
“We are designing targeted programmes to upgrade technology, particularly for small and medium-sized businesses, with the aim of harnessing artificial intelligence and industrial automation,” Kostis Hatzidakis said. “We want to bring research closer to production, turning knowledge into products and jobs. That is why, during my time as finance minister, we introduced a particularly attractive framework of tax incentives for investment in research and development, with super-deductions of up to 315%. These are the most generous tax incentives in Europe. We are also working to strengthen technology transfer offices at universities and placing particular emphasis on technical and vocational education, especially in-company training, with rigorous assessment.”
Kostis Hatzidakis also noted that, after a decade of falling wages, the average wage now ranks 17th among 27 countries and the minimum wage 13th among 22. “If Greek business owners want to pay more, they are free to do so, and we encourage them in that direction. Soon, the minimum wage will be determined through collective bargaining rather than by government decision. The two sides will therefore be free to raise wages as much as they want,” he said.
5. Internationalisation
“In recent years, Greek goods exports have increased significantly. In 2025 they reached 48 billion. The next step is to broaden both the range of products we export and the markets we serve. That is one of the main goals of the new National Strategy for Internationalisation,” Kostis Hatzidakis said. “At the same time, significant new opportunities are opening up to take part in the strategic value chains being developed in Europe. The defence industry is a case in point. We want to make it easier for Greek businesses to participate in European consortia that will receive funding from the European Defence Fund and the new Competitiveness Fund.”
“Significant progress has been made in recent years. The successes were not the government’s, but mainly those of business owners and workers. We will continue our efforts because there is considerable scope to further strengthen the competitiveness and productivity of Greek industry. If we succeed, we will have better wages and better jobs. This is a national goal that should unite us all.”