Pierrakakis: The escape clause will be applied with a base year in 2024

Half of the percentage that was a few years ago, the underlying economy in Greece has declined, according to Finance Minister Kyriakos Pierrakakis, speaking at the start of the 5th. Ot forum. As he explained, the percentage of the economy in Greece was 30%, while « now has fallen below half », which – as he explained – is expected to show a study by the International Monetary Fund, which is expected to come to publicly. At the same time, the minister noted that the escape clause for Greece would be applied to a basis in 2024 and not in 2021, as would apply to other European countries, as our country is at a higher level than other defense spending. According to Mr. Pierrakakis « this will save close to 600 million euros » for Greece.

The Minister of National Economy and Finance referred to the government’s battle against tax evasion, which he also said by those who met in the US during his recent visit at the IMF and World Bank meeting. He stressed that « the connection of POS has contributed to this, meaningfully adding that » the underlying economy was once 30%, and now it has fallen below half. « 

Indeed, he announced that this element is expected to be imprinted « in reports to be published by the IMF », while elsewhere he noted that « part of the surplus has emerged from a reduction in tax evasion ». Referring to other measures during tax evasion, he talked about the digital clientele, stating that digitization makes you « get revenue from where you could not before ». « The piece that has not been applied will see it applied, » he added, adding that « step by step you will see it catching the whole piece. »

How will the escape clause be applied

Referring to the issue of the escape clause, Mr Pierrakakis said that « the debate has to do with spending » so that « in the good years we can serve debt ». As he explained, there is the expenditure agreement and the escape clause has to do with states that have not provided the necessary defense spending, in previous years, unlike Greece. As he said, the application of the escape clause has to do with the fact that « in relation to 2021 the difference will be excluded from the expenditure rule. For us the year of comparison will be 2024, « he said, adding that the savings would pay close to 600m euros, adding that » for us it is a national issue « .

TIF’s « basket » and denial for ENFIA

Beyond that, the minister denied ENFIA’s abolition scenarios, stressing that « they are not on our priorities ». At the same time, the minister left open the possibility of intervening on the rental tax scale, and without wanting to refer to specific measures, he noted meaningfully that « the measures are being announced in another city and by another Kyriakos ». He also added that « the direction of the TIF is the removal of weights from the middle class income ».

Stable our bilateral relationship with the US

Referring to his visit to the US and the discussions he had with the administration of the Trump government, Mr. Pierrakakis said: « I discussed with my counterpart Mr. Besed » and added that « our bilateral relationship is stable ». Regarding the implementation of duties he himself said: « We want to have a very constructive role » while adding that « our voice is stronger on the table », referring to the « very good fiscal course of the country ». He also added that the negotiation between the US and the EU « should end up with an environment that will be deprived of obstacles », referring to the need to deepen relationships.

« The climate in relation to us is positive, » he added, adding that this is also due to the « goodwill of the Greek diaspora that exists in the US. »

Regarding the possibility of US investments in Greece and if something has changed with the Trump administration, Mr Pierrakakis noted that « American investments have already come » and added that « investment has no political color ». He also said: « In 2019 we were on the 301 US trade list. It’s a list you don’t want to be there. We got out of the list and Google, Amazon and Microsoft came. « 

Source: OT