Government announces new support measures after Easter [InTime News] | Constantine CapsaskisNewsletter Editor |
Welcome to the weekly round-up of news by Kathimerini English Edition. On Tuesday, two days after Greek Orthodox Easter, the government announced a new package of economic measures including 1 billion euros in relief measures for pensioners, renters, and public works. The announcement, delivered directly by Prime Minister Kyriakos Mitsotakis on Tuesday to capitalize on the post-break lull, is part of a wider strategy by ruling New Democracy to regain political momentum following months of crises and missteps, including the managing of the investigations into the Tempe railway disaster. The measures will be funded through the primary surplus recorded by the state budget, with the prime minister noting that “with everyone’s effort, we did much better than expected”. The government has decided to put financial relief and stability, which continue to poll at the top of Greek voters’ concerns, at the heart of its messaging in the build-up to the Thessaloniki International Fair in September. “As long as the economy continues performing well, without fiscal instability, and as long as foreign rating agencies continue to defy global trends by upgrading Greece, citizens can look forward to better days ahead”, said Mitsotakis, promising tax-cuts and relief for the middle class at the Fair. The prime minister’s office expects to see an immediate effect on the government’s polling numbers, with Mitsotakis himself ruling out early elections. The prime minister also emphasized that he would be the one leading New Democracy into the next electoral contest. The opposition parties have attacked the measures as political tricks by the government to shore-up its performance in the polls, where it continues to suffer. “The government is using the surplus as a pre-election tool”, noted main opposition party PASOK, which stated that the surplus was a result of an unfair taxation system propagated by the government. “Today’s [Tuesday’s] announcements are an admission of your responsibilities in impoverishing the wider social strata,” said SYRIZA leader Sokratis Famellos. Spotlight - A long-standing campaign for citizenship by individuals who were born in Greece but adopted by families abroad between 1948 and 1975, primarily in the United States and the Netherlands, finally succeeded in its goal. Interior Minister Thodoris Livanios announced that a ministerial decision will be published setting out the process for these individuals to be registered on municipal lists, paving the way for Greek citizenship. This will mainly be a simplification of the existing process which required detailed cross-referencing of, often impossible to get, documents to prove that the children who were adopted are the same individuals as those applying today. “Whatever other official document contributes to the identification of the individual”, will be the new standard. The ministry expects that up to 1,500 people will be eligible to apply for citizenship, if they so desire.
- A 55-year-old man, identified as one of the last remaining key figures of the so-called “Greek Mafia”, was gunned down in broad daylight outside a medical center in the populous suburb of Halandri. Unidentified assailants shot more than 20 rounds from an automatic weapon at the man, before fleeing in a stolen getaway car. The attack mirrors similar execution-style hits which are part of a wider string of underworld killings linked to control over lucrative extortion and protection rackets that are part of the country’s nightlife. The murdered man was a recurring name in police investigations into organized crime in the country, with him featuring prominently in several important cases as late as March of this year.
|
OPINION | Tom EllisEditor-in-Chief, Kathimerini English Edition |
A Nobel Prize laureate assesses the Greek economy [InTime News]The new production model that Economics Nobel Prize laureate Christopher Pissarides had proposed for Greece in an extensive report five years ago and which was supposed to serve as a blueprint for the country’s transformation into a modern, innovative economy, has not materialized. In an interview with Kathimerini, the respected London School of Economics professor notes that while some reforms have been implemented, “this has been picking the low-lying fruit”; the more difficult and essential ones have not. The main obstacles? Not having simplified the country’s public sector bureaucracy; and also, continuing with the outdated model of family-run businesses. Greeks like small shops, small businesses; they want to be the director, have their family working with them. The mentality of starting a business with just one or two employees needs to change, he says. The corecipient of the 2010 Nobel prize in Economics – along with Peter Diamond and Dale Mortensen – believes that Greece should prioritize agricultural production, especially given the popularity of the Mediterranean diet. And, also focus on export-oriented companies, not those that only aim for the Greek market; in this context he even sees the possibility of Greece producing small electric cars designed for European cities. Then, there’s the need to shift to other forms of growth that do not require so much staff, because Greece’s population is dwindling a reality that is problematic for tourism as well, a sector that acts as a main source of income and one that needs a lot of hands. Last, but definitely not least, there is the need to bring back the well-educated Greeks that have left and are still leaving to work for high-tech companies abroad. Their return, which can and should steadily materialize with the right incentives, would act as a major part of the turnaround the economy needs. Despite the timing being ripe following last decade’s crisis, and the rare “gift” the country got from the EU’s Recovery and Resilience Fund’s immense resources, as well as the pro-reform rhetoric, a lot has not been done. This dire reality brings to the forefront the simple question: if not now, when? |
| CHART OF THE WEEK | |  The government is exploring ways to incentivize property owners to fully declare their rent incomes. One option being considered is the return of a full month’s rent, something the government argues will also benefit renters. Currently, the average registered rent across Greece stands at 255 euros, a sum which seems particularly low considering the recent boom in the housing market and the increase of average letting asking prices. Indicatively, in central Athens the average letting asking price has reached 11 euros per square meter, meaning that a 75 square meter apartment will be on the market for approximately 800 euros. |
| | |  | ESCAPADE | | Xanthi: Breaking the downward spiral Active locals that no longer expect state support are making the revival of this northeastern Greek city their business. Go to article > |
|
| ECONOMY IN A NUTSHELL | | | “The Athens Exchange (ATHEX) general index closed at 1,705.61 points on Friday, up 3.86% from last week.” | | | “Greek households spent more than they earned in the final three months of 2024 according to the latest data released by the Hellenic Statistical Authority, supplementing their income with savings or with loans. Specifically, the consumption expenditure of households rose by 4.4% year-on-year, with disposable incomes growing by only 1.4%.” | | | “The rally in the Greek property market is expected to slow down this year, with the European Banking Authority forecasting a 4.4% increase in housing sale prices across the country. This marks a drop in the annual rate of almost 50%, with prices in 2024 increasing at an average rate of 8.7% according to the Bank of Greece.” |
| WHAT'S ON THE AGENDA | | - 28/04/2025Cabinet meeting: The government will meet to discuss measures to support households in regard to rising prices for basic items.
- 28/04/2025European environmental meeting: European Union environment ministers will meet to discuss issues relating to disinformation with respect to climate policy.
- 29/04/2025EPP Congress: The European People’s Party will hold its two-day congress in Valencia, with ruling New Democracy nominating Deputy Prime Minister Kostis Hatzidakis for Vice President of the EPP.
|
Editor's Pick If you look at the percentage of the trend overall, the situation is ripe for a Greek version of Giorgia Meloni or Marine Le Pen.Alexis PapachelasRead the article |
|
No comments:
Post a Comment