In his weekly review, Prime Minister Kyriakos Mitsotakis discusses Greek-American relations, describing the Crete-Cyprus electricity interconnector (GSI) as of strategic importance following the issue of the permits needed to advance the project.
Domestically, he announced that the initiative to cut prices on around 1,000 staple products would be extended until the end of the year, and outlined new measures for borrowers, including a fixed 3% interest rate under the out-of-court debt settlement mechanism and tougher fines for loan servicers. He also highlighted the government’s measures to reduce non-performing loans and private debt.
He put particular emphasis on tackling organised crime, setting out the results of two years of the ‘Greek FBI’, as well as the dismantling of networks involved in illegal farm subsidies.
In detail:
Good morning, everyone. The midterm elections in the United States were one of the week’s most significant events, shifting the political balance in both chambers of Congress.
Greek-American relations, however, have strong foundations and transcend electoral cycles. It is certainly welcome that Greek Americans were elected or re-elected to Congress, and that people with whom the Greek government has very good relations will serve on key defence and foreign policy committees. This matters for our country, particularly at a time of geopolitical instability in our region.
On Friday, a permit was issued for survey work and cable laying for the Crete-Cyprus electricity interconnector (Great Sea Interconnector, GSI), along with the relevant NAVTEX notice. These are important steps towards advancing the project.
Greece and Cyprus are the countries issuing permits for survey work on a project designated as being of common European interest, in which French companies are participating. It is important to understand fully that interconnection projects such as the GSI are strategic investments that strengthen energy self-sufficiency, regional cooperation and stability, contributing to peace and security in the wider region.
Returning to the US election result, there is something else I take from it. The cost of living was one of voters’ main concerns. That is, of course, an issue we know all too well. High prices continue to put pressure on households in our country, despite improvements in several economic indicators.
That is why we are extending the National Price Reduction Initiative until the end of the year, with around 1,000 staple products at lower prices, including foods found on every family’s table. Market inspections are also continuing, so consumers can be confident that announced price cuts are being implemented in practice.
The bill passed by Parliament this week also aims to ease the financial burden on citizens. It includes 16 measures in their favour, to which we added two more important measures for borrowers. From 1 December, vulnerable and eligible debtors who settle their debts through the out-of-court mechanism will have a fixed interest rate of 3% for the full term of the arrangement, instead of a variable rate that can reach 5.67%.
To give an example, on a debt of €100,000 repaid over 20 years, the saving could reach €20,200 if the debt is secured, and €28,000 if it is unsecured. At the same time, we are increasing tenfold the maximum fine the Bank of Greece can impose on loan servicers for serious breaches, from €500,000 to €5 million. It is also significant that these measures secured broader support in Parliament, beyond the government majority.
I would like to recall that since 2019 we have introduced at least 27 measures affecting the banking system. Through ‘Hercules’, we reduced banks’ non-performing loans from 48.5% in 2016 to 3.4% this year, created the out-of-court debt settlement mechanism, protected primary residences and curbed bank fees and ATM charges, saving citizens around €150 million a year. As a result, private debt now stands at 96.6% of GDP, below the European average of 119.3%.
This week also marked the ‘birthday’ of the ‘Greek FBI’, which has completed two years of operation. When we pledged in 2023 to uphold the rule of law in every sphere of public life and everyday activity, we meant that the state would not back down in the face of organised crime, however powerful the interests ranged against it. Today, we can point to tangible results: over the past two years, the Directorate for Combating Organised Crime has handled more than 1,500 cases, brought charges against more than 5,400 people and dismantled 259 criminal groups. These range from fuel and cigarette smuggling rings to corruption networks in tax offices, planning authorities and prisons.
This effort, of course, did not begin two years ago. Since 2019, dozens of criminal networks have been dismantled, from fake prescriptions and fraud against EOPYY and EFKA to the illegal issuing of driving licences, bribery in public services such as the Land Registry and the unauthorised occupation of beaches. Public servants, including police officers, were involved in several of these cases. I want to be clear: there are no no-go areas, and no one is exempt from scrutiny. The law must apply to everyone, without exception.
One of the clearest examples of this effort is the crackdown on networks involved in illegal farm subsidies. I know the transition to the new system has caused difficulties for many farmers, particularly when submitting applications.
The relevant services are working every day to resolve the technical problems and complete payments. Around 40,000 beneficiaries are already being paid; advance payments will be made by 30 November and final settlements in December. Producers who have not yet submitted an application can still take advantage of the extension to Tuesday 10 November.
I now turn to the other issues of the week:
1. At this week’s Cabinet meeting, we presented the government’s 90 priorities for the next six months, up to the elections. They range from a further increase in the minimum wage, targeting €1,000 by early 2028, and measures to improve access to housing, to upgrading health and education and completing major infrastructure projects. We have a specific plan and timetable, but a great deal of work remains. Our goal is to deliver on our commitments so that citizens can judge us on our record as a whole.
2. Ten major investment projects are moving ahead under the Development Law in Macedonia, Central Greece, Thessaly and Crete. They are worth a total of €226.2 million, with more than €104 million in state support and over 400 new jobs. The projects span sectors from cement and aluminium to food, pharmaceuticals and data processing. Procedures for businesses are also being simplified: minor changes to an investment plan will no longer require separate approval, clear deadlines are being introduced, and businesses’ long-term obligations are being reduced from six years to three for small firms and five for medium-sized and large ones.
3. We are setting rules for the use of artificial intelligence at work through a new bill presented by the Ministry of Finance, one of the 90 priorities I mentioned above. In particular, people working through digital platforms will be entitled to transparency about the criteria used to make decisions affecting them, mandatory human review of important decisions and protection of their personal data. Their employment status will also be clarified.
4. There are two changes to services for people insured with EOPYY. First, from 1 November, doctors, diagnostic laboratories and all contracted providers must enter test results in the new Digital Repository, giving each citizen and their doctor access to a complete record of their test history without having to search for old results. Second, the new myEOPYYapp allows insured people to book appointments at EOPYY pharmacies on their mobile phones, request home delivery of high-cost medicines and submit documents for reimbursement.
5. At the KEDE conference in Kalamata, I announced six plus two initiatives to support municipalities: €300 million for recycling projects and €240 million in November to settle overdue debts to energy providers. We are increasing the overnight stay levy from 0.75% to 1% and doubling the annual state grant for maintaining school buildings.
We are also providing €200 million a year for local roadworks once the fuel market has stabilised, and €50 million for battery installations so municipalities can use energy produced by local renewable sources to meet their own needs.
At the same time, in cooperation with PPC, we are arranging the settlement of outstanding debts of up to €60 million. We have also committed to introducing a special electricity tariff for municipalities once the current turmoil in the energy market begins to ease.
6. Kalamata was also the first stop on my tour of the Peloponnese, where I had the opportunity to visit work on the Kalamata-Methoni road, the airport upgrade and the new Solar Sludge-Drying Unit, which uses solar energy to treat waste. In Megalopoli, the contract for the new prison was signed, while in Tripoli the new student residence of the University of the Peloponnese was inaugurated. It will house 96 students in a former hotel, bringing the university’s total accommodation places to 426.
7. For the first time in its history, Greece is acquiring aerial refuelling aircraft, with the procurement of three Embraer KC-390 aircraft from Portugal and the option to acquire three more. This will allow our fighter jets to refuel in the air: initially the Rafale and Mirage, and the F-16 in a year’s time, extending the range and duration of their missions. The Navy has also taken delivery of two more MH-60R Seahawk anti-submarine helicopters, while the final two of the seven in total are expected by the end of the year.
8. With the support of the Armed Forces, a pioneering initiative by international standards is also getting under way: no journalist will go to a conflict zone unprepared. In cooperation with the General Secretariat for Communication and Media, journalists’ unions and the Hellenic Red Cross, a training and certification programme is being set up for those covering wars and high-risk assignments. The first cohort will include 25 journalists from public media organisations, with training for those covering natural disasters to follow.
9. A special moment for Rodopi: after centuries, a blessing service was held once again at the Byzantine church of Maximianoupolis, just outside Komotini. The church has been restored with €1.5 million in funding from the Recovery Fund and is now open to visitors. Plans are also under way to make use of Komotini’s Imaret and old ice factory, including an exhibition dedicated to the history of the city and its communities.
10. After 109 years, 48 valuable ecclesiastical artefacts are returning to Serres. They were taken in 1917, during the Bulgarian occupation in the First World War, from the Holy Monastery of Timios Prodromos, the Holy Monastery of Panagia Eikosifoinissa and the Holy Metropolis of Serres and Nigrita, and have been kept in Sofia ever since. Their return, under an interstate agreement with Bulgaria, fulfils a decades-long request from the local community. I am therefore very happy and moved to be in Serres today to attend this historic moment.
To conclude, I would also like to mention two initiatives from the private sector. Eurobank has announced a 5% pay rise for working mothers after the birth of their first child and a further 10% after their second, once they return from maternity leave. It is also maintaining its one-off payment of €25,000 for a third child and €30,000 for a fourth.
Telekom, for its part, is doubling or even tripling speeds at no extra cost on around 700,000 fibre connections. Two different initiatives that deserve to be emulated. Have a good Sunday!