Motivation to owners The Minister of Economy and Finance announced for the exploitation of closed real estate, Kyriakos Pierrakakisin an interview with the newspaper “Parapolitika”.
Specifically, Mr. Pierrakakis said: “We are focused on a combination of measures and additional incentives for the owners in order to open closed houses and quickly enter new houses on the market”
Following is the interview given by the Minister of Economy and Finance:
1. You have announced the intention for new middle class reinforcement measures. How exactly is the middle class determined and where does it need greater relief? In the income tax it pays or in the amount it gives to a mortgage loan or rent?
The middle class is determined by income criteria, but not only. All the factors you mentioned play a role: rent, housing loan, purchasing power. The middle class was the one that had the highest income losses during the years of the Memorandum, the one that taxed the state and its revenue and continues to support it. That is why from the first day that ND took over as a government. It had a double target: to immediately strengthen the vulnerable households that were in dire need but to support the middle class that has paid a disproportionately high price. Looking to the middle class, from 2019 until today, we have reduced ENFIA by 35% plus 20% for insured properties, abolished the special solidarity levy, parental benefits and donations tax for up to 800,000 euros, reduced tax rates for businesses.
Today’s dynamics of the economy strengthens these citizens. Salaries go up, new jobs are being created, consumption is increasing and thousands of businesses are supported. Also, the middle class can now be included in the out -of -court debt settlement mechanism, based on the bill we voted on in April in Parliament. It is a possibility that has not existed so far and we have taken care to restore injustice, because we cannot leave behind those who are trying. Of course, in view of the TIF in September, the measures we will announce will increase the disposable income of the citizens.
2. Are new reductions under discussion in direct but also indirect taxes? If so, where will priority be given?
The debate concerns direct taxes. Their reduction leaves more money in the citizen’s pocket and is a fair measure, based on the ability to pay and the progressive taxation scale. Tax weighting relief relieves middle income, without burdening vulnerable. It creates a stable tax environment and ultimately helps the economy. Employees, employees or freelancers, are a lever for our country and is to release them from burdens.
I think if in the summer, when we will make our final planning for the TIF and the Prime Minister’s announcements, the data on the positive course of the economy are confirmed and in 2025, we will be able to present a coherent package of measures, aiming to reduce taxation and further liberalization of economic activity.
The important thing, of course, is that we are now planning economic policy in a fiscal country, with growth and single -digit unemployment. Greece has a rapidly divergent debt, and it also released the 2032 hultness. One year-in-law, as there was a risk that the cost of serving the debt would push the country. With early repayments of expensive memorandum loans we have dismissed this possibility, so we can now plan the future with confidence and security.
3. Beyond the programs already implemented, do you plan other interventions for a more affordable roof? Are they under thinking and changes in the terms and conditions for “my house II”?
I understand the problems, but the evidence shows that the program is moving forward. We want to “quickly” fall on the market to meet demand and reduce prices. We are in a phase of intensive discussions on how this will happen. We are studying the subject with the approximately 25,000 properties located in banking portfolios and demand management companies, while discussing the proposals of all market factors by looking for appropriate solutions. We are focusing on a combination of measures that will give new immovable property owners to open closed homes and renak their homes more easily, by-pass in processes, and in the meantime we are reinforcing families, as we will do with a rent at the end of November. We have a sense of urgency on the issue of roof and so we will work.
4. Where will the additional 500 million be used in the Public Investment Program?
In the hundreds of projects that are currently evolving throughout the country. It’s not one or two projects, it’s not just the big ones. We are investing to change the image of Greece in streets, schools, energy projects, digital infrastructure. And this is a strategic choice to enhance growth, to accelerate the transformation of the country, to create jobs. In 2019 the Public Investment Program was € 5.6 billion and in 2025 will be 14.1 billion euros. This is the largest PDP ever and we plan to plan 2026 even bigger.
The State’s arrears to individuals have exceeded € 3.4 billion. What is your design?
It has been a concern for us daily for the last two months, when I have taken over the responsibility of the Ministry of Finance. Key debtors are hospitals, insurance funds and local government. I understand that there are problems with debt offspring, in incomplete data, while some of the debts have not completed 90 days, so they are formally included in the State’s overdue without being in reality. In any case, it is an issue that deprives valuable liquidity from the market and must be settled. A working group at the ministry is working on it and our orientation is to set specific goals for the bodies to pay their obligations.
5. Yiannis Stournaras has repeatedly pointed out that tax exemptions exceed 1,000 in total and must be re -examined. How do you deal with this proposal?
I share Mr Stournara’s view. It wants a study, evaluation of the result and a very careful choice for what we will keep and what we will abolish. It’s not easy. Tax exemptions are really many because we live in a country with many peculiarities. “A Tax for All” may sound attractive, but it is not realistic. For example, there are many categories of citizens, unmarried, married, parents, old men who need different treatment. There are many types of investment, many types of real estate exploitation, many areas in the country affected by natural disasters. All of this wants special management. Otherwise, taxation will become Procrustes’ bed. The abolition of tax exemptions is equivalent to imposing a new tax and our policy is moving on tax cuts, not in growth. So we have to look at the subject indeed, but with great care.
6. What did you get about the future of duties from your recent meeting with your American counterpart Scott Besed in Washington? Is it possible to exclude specific Greek products? Can Donald Trump – duties – negatively affect the Greek economy and the course of the budget?
The 90 -day watch to reach an agreement between Europe and the US is counting down. The prime minister took the initiative and proposed a solution that benefits Europe and the US equally, a win-win solution which is an agreement for zero duties between Europe and the US: both sides to reduce duties to zero. This proposal was positively commented on the White House. We will see what the sequel will be. In any case, the government is taking all measures so that the economy can in this new environment, on the one hand, to cope with the challenges and to meet the commitments to citizens.