The Greek Letter * ekathimerini - Greece condemns Erdogan's speech on Cyprus - 4 May 2025

 

Greece condemns Erdogan’s speech on Cyprus[Shutterstock] Constantine CapsaskisNewsletter Editor Welcome to the weekly round-up of news by Kathimerini English Edition. Greece’s government and political parties have condemned comments made by Turkish President Recep Tayyip Erdogan as part of the TEKNOFEST awards ceremony held in Turkish-occupied northern Cyprus. Speaking from the island’s divided capital, Nicosia, Erdogan claimed that Turkey and Turkish-Cypriots are the “rightful owners” of the occupied areas, adding that his country’s presence on the island will continue for centuries. “It is a decisive step toward the shared future of one nation, two states, with one heart. Whoever doesn’t know this must learn it. Whoever hasn’t heard it must hear it,” he added, while highlighting the capabilities of the Turkish defense industry. During his visit, Erdogan reaffirmed his commitment to a two-state solution for the island, rejecting renewed talks unless the internationally recognized Republic of Cyprus and Turkish Cypriots are treated as equals. “The two-state solution is the joint vision of Turkey and northern Cyprus,” Erdogan added. “Any new negotiation process must be between two sovereign states.”, he emphasized. Greek diplomatic sources condemned these statements, noting that “at a time when a significant effort is being made by the UN Secretary General on the Cyprus problem, with the resumption of the informal talks and the appointment of Maria Angela Holguin Cuellar as Personal Envoy, any action to create a fait accompli in the occupied territories is an extremely negative development”. Erdogan’s comments were also rejected by Greece’s opposition parties. Main opposition PASOK said that the comments “confirm the intransigent and systematic way in which the Turkish government seeks to divide the nation and recognize” the illegitimate leadership of the Turkish-occupied areas. “We condemn the provocative statement of Turkish President Erdogan […] that undermines efforts to restart negotiations on the Cyprus issue,” noted a statement released by SYRIZA. Erdogan’s speech comes at a time when Greece is also looking to resume exploratory work on the Great Sea Interconnector, which is planned to link the electricity grids of Greece, Israel, and Cyprus (ending the latter’s energy isolation), despite potential geopolitical friction with Turkey. The Greek Foreign Ministry noted that it “hopes no major issue will arise” when surveys restart over the coming months, and said that a reaction by Ankara could test Greek-Turkish relations. Spotlight The file on the Tempe railway disaster compiled by Special Investigative Judge Sotiris Bakaimis was forwarded to the Prosecutor’s Office of the Supreme Court and the Hellenic Parliament this week. The file includes an overview of potential liabilities of former ministers Christos Spirtzis and Kostas Karamanlis, with the latter (who was serving as minister at the time of the accident) facing possible criminal charges. “I’m confident in my innocence,” said Karamanlis in a statement released following the sharing of the report, with government officials seeing signs of ministerial negligence but not of felony-level wrongdoing. “To say a minister didn’t heed warnings and thus should be charged with a felony ventures into a realm of logic that could lead us to prosecute all past ministers for incomplete infrastructure”, said government spokesperson Pavlos Marinakis, defending Karamanlis and stressing that in his view ministerial oversights should not automatically trigger felony charges.   Experienced diplomat and politician Petros Molyviatis died on Sunday at the age of 97. Born on the island of Chios in 1928, Molyviatis joined Greece’s diplomatic corps and served in several key positions including the delegations to the United Nations and NATO as well as embassies in Ankara and Moscow. He was also a close associate of Konstantinos Karamanlis and was the head of his political office in his term as prime minister following the collapse of the military junta (1974-1980). He would also join Karamanlis when he would serve as President of the Hellenic Republic, as Secretary-General of the President’s Office in both of Karamanlis’ terms (1980-1985, 1990-1995). He would also be appointed Foreign Minister in 2004 in the government of Kostas Karamanlis (the nephew of Konstantinos), playing a pivotal role during the 2004 referendums held in the Republic of Cyprus on the United Nations Cyprus reunification plan (commonly known as the Annan plan).

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OPINION Tom EllisEditor-in-Chief, Kathimerini English Edition Tax season with positive signs As the tax season gets underway some welcome developments are becoming apparent; Greeks are filing their income declarations at record numbers and at an unprecedented speed. Nearly half of the country’s taxpayers have already submitted their tax returns within the first 50 days of the 120-day window allowed by the authorities, to a large extent the result of tax discount incentives offered for early submissions. A first deadline offering a 4% discount was April 30, with a second phase offering a 3% discount for those who file by June 15, and a final 2% discount for declarations submitted till July 15; all contingent on full payment of the amount owed by the end of July. It is not only the speed with which taxes are being paid, but also – and obviously, more important – the increased amounts coming into the state coffers. As a result, the state is looking forward to further improving its balance sheets. Tax compliance and transparency are the key, achieved to a large extent due to stricter regulations and better implementation, especially on professionals and small businesses. According to the Independent Authority for Public Revenue, the significantly upward trend in the amounts being paid is also the result of the replacement of cash with electronic transactions, especially with respect to the increase in direct VAT revenues. The VAT gap has been reduced from 23% in 2018, to less than 14% this year, with the goal being to achieving the European average of 9% by next year. At the same time, the gradual digitization with continued upgrades in the tax system, makes filing easier and enables better financial planning for both citizens and the state. These developments add to the overall improved situation. It comes as no surprise that in the process the state budget has moved from the traditional deficits to recording surpluses. All that said, it is clear that the majority of households, despite paying their taxes, are struggling to make ends meet, hence the need for higher growth and, ever more so, the closing instead of widening, the inequality gap.

CHART OF THE WEEK

Over the last five years, property prices have increased by 50% and far outpaced the rise of Greece’s average monthly salary. An employee earning the average salary in 2020 would be able to buy their own home in 16 years, but five years later this has risen to 19 years. Despite government interventions to manage the situation, there seems to be little evidence that the situation is set to improve. Investments in the construction of new properties continue to be about a fifth of those recorded before the financial crisis (2006-2008), resulting in limited increases to the supply of houses. Additionally, linked to this, the cost of construction materials has risen exponentially. Furthermore, not only are Greek residents facing competition from property buyers abroad, they are also competing with owners looking for returns from the short-term letting industry.

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ECONOMY IN A NUTSHELL

“The Athens Exchange (ATHEX) general index closed at 1,726.13 points on Friday, up 1.20% from last week.”

“Nearly half of Greek small and medium-sized enterprises show particularly low levels of digital technology adoption, with Eurostat’s Digital Intensity Index rating 46.6% of Greece’s SME’s as having low digital intensity. This is the second worst performance among 27 European Union member states (27.1% EU-wide average), with Greece only being ahead of Bulgaria (50.1%).”

“Ahead of the start of Greece’s high tourist season, many businesses continue to face staff shortages. This crunch is severely affecting hotels and restaurants. Indicatively, small hotels in northern Greece did not open over Easter due to this lack of staff. While many look to foreign workers to ensure adaquete staffing, delays in work permits and lack of specialized training persist.”

WHAT'S ON THE AGENDA

05/05/2025Youth Violence: Prime Minister Kyriakos Mitsotakis will announce his government’s National Strategy to Prevent and Confront Youth Violence and Delinquency. 06/05/2025Evaluation of public services: Interior Minister Theodoros Livanios announced that the new online platform allowing citizens to directly evaluate public services will be launched on Tuesday. 07/05/2025El-Sisi in Athens: Egyptian President Abdel Fattah El-Sisi is set to visit Athens next week. 09/05/2025Crete North Road Axis: Prime Minister Kyriakos Mitsotakis is set to attend at the signing of the tender for the Crete North Road Axis, stretching from Hania to Irakleio, that will significantly improve the island’s infrastructure.

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PODCAST

01/05/2025 • 12:49The homecoming of Greece’s ‘lost children’The struggle of many Greeks who were sent abroad as children for adoption in the aftermath of the Greek Civil War and the decades that followed is finally coming to an end as the Greek government is now paving the way for them to regain their Greek citizenship. Professor Gonda van Steen, the Koraes Chair at the Center for Hellenic Studies and Department of Classics at King’s College London, and author of the book “Adoption, Memory, and Cold War Greece: Kid pro quo?,” joins Thanos Davelis as we look into the story of the Greek adoptees and their long and difficult homecoming.

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