New Greek Prime Minister Kyriakos Mitsotakis referred to practically every reform promised by him and his conservative New Democracy (ND) party over the past four years – and then some – expressing a pro-market, meritocracy-based and “rule of law” thread in practically all policy statements unveiled in Parliament on Saturday afternoon.
The policy statements come days after a new Parliament plenum arose from the July 7 election, which ND won and formed a majority government, as lawmakers are now allowed three days of debate before a vote of confidence is scheduled for the Mitsotakis government.
Pledges, promises and pronouncements of already prepared draft legislation, some set for fast-track ratification, dominated Mitsotakis’ lengthy address.
Ideologically, Mitsotakis stayed true to his business-friendly and liberal outlook, while promising to follow through on promises of “get tough” measures on issues ranging from the penal code, crime to so-called “strategic defaulters”.
He also cited thorny relations with neighboring Turkey, referring directly to Turkish President Recep Tayyip Erdogan, who he mentioned by name, on the anniversary of the infamous Turkish invasion of Cyprus in 1974 and the latter’ same-day jingoistic quips./
The highlights include:
• Allowing expatriate Greeks, who retain voting rights in the country, to cast their ballots from overseas polling stations
• Scrutinizing the adherence of the newly christened Republic of North Macedonia to bilateral agreements, i.e. the Prespa agreement, in relation to that country’s EU prospects, a potential political “hot potato” for Mitsotakis, given ND’s sharp opposition to the pact
• Immediately cutting taxes for businesses and individuals; bringing down the rate for the former to 20 percent in two phases and restoring a tax rate of 5 percent on dividends
• An inaugural tax income tax rate on yearly incomes, of up to 10,000 euros, dropping from 22 percent to 9 percent
• Gradually abolishing the extremely unpopular, as far as Greece’s tax-swamped middle classes are concerned, “solidarity tax” and an annual lump sum payment (epitidevmatos) on self-employed professionals and craftsmen, currently ranging from between 500 to 600 euros
• Gradual reductions in the equally oppressive social security contributions by self-employed professionals, from 20 percent to 15 percent, and cuts in VAT rates from 24 to 22 percent (high rate), and from 13 to 11 percent (low rate, less products/services in this category)
• Reducing the unpopular property tax (ENFIA) as of 2019, with a median reduction of 22 percent as of next month. “Now refer to a kolotoumba (political somersault), but in the (positive) direction,” he said, turning to deputies of the leftist SYRIZA main opposition.
• Improving the 120-month installment plan to cover arrears by private individuals and businesses to the state – a relief measure passed by the previous Tsipras government – with lower interest rates on arrears, an increase in the ceiling of arrears (one million euros) for a business to be eligible and lower minimum monthly payments. Additionally, debtors included in the framework who are conscientious in their payments will not face confiscations or seizures of bank deposits. At the same time he promised that the installment plan will be the last, at least by his government.
- Suspension of VAT on new construction and a tax on surplus value (imposed during a property’s sale)
Other pledges he cited in policy statements included:
• Immediate steps for debt-laden and state-run Public Power Corp. (PPC), where he said that whatever rescue plan will not involve new burdens for consumers. On the revenue side, he pointed to a privatization of networks and a crackdown on “strategic defaulters”, with a strategic investor to be sought in the long run.
• A privatization of the stake, at 30 percent, held by the state for the Eleftherios Venizelos Athens Inter-national Airport (AIA), as well as another privatization tender for Hellenic Petroleum, the country’s biggest petrochemical producer, after previous tenders failed.
• Jump-starting the massive Helleniko real estate project in SE Athens, a leitmotif of New Democracy’s policy, after years of legal challenges and heaps of Greek bureaucratic “red tape”
• Repealing the more simple representational system passed by the previous government through Parliament, as well as disengaging the election of a president of the republic, by Parliament, from the prospect of a snap election in case legislators cannot agree on the utterly ceremonial head of state
• Repealing recent revisions to the Greek penal code, such as a bevy of offenses being transformed from felonies to misdemeanors, as well as legally precluding the release of murders and terrorists handed down life sentences, as well as the establishment of maximum security prisons
Touching on the unreservedly sensitive issue, as far as crucial relations with European creditors are concerned, of annual primary budget surplus targets, Mitsotakis again promised that fiscal targets, as agreed to by the Tsipras government, will be met. In walking a political “tightrope” at this point, the new Greek premier said that “by achieving goals… an opportunity will be provided for the (Greek) government, in the next day, to vie for a reduction in surpluses”
In reference to Turkey, he said international law – as viewed by the international community and not unilaterally interpreted by official Ankara – will remain Athens’ “compass”, without “rhetorical paroxysms, like the one we heard today (from Erdogan),” he said, inviting the Turkish president to join him in taking steps forward.
Turning back to the domestic front, Mitsotakis announced five “emblematic”, as he said, projects for the congested greater Athens and Thessa-loniki areas, namely:
• Combining the National Archaeo-logical Museum in central Athens with the adjacent Athens Polytechnic (Metsovion) campus, which includes the iconic main building but only currently hosts the architecture and fine arts faculties.
• Moving the Korydallos penitentiary and assorted other facilities from the working-class Korydallos district, in greater Piraeus, then demolishing the buildings and creating a park
• Upgrading and transforming the 1960s- and 1970s-era Helexpo trade and convention complex in the middle of Thessaloniki
• Transforming the former Tatoi royal estate into an agro-nutrition unit with hiking paths, open to the public
• Creating an international innovation center at the site of the former fertilizer plant in coastal Keratsini, just west of the port of Piraeus.
Finally, he promised that single-use plastic products will be eliminated in Greece by 2021, whereas the anti-smoking law will be strictly observed everywhere in the country, starting from Parliament.
