Greek PM Balances Fiscal Prudence with Economic Measures at Trade Fair
Greek Prime Minister Mitsotakis outlines economic policies at Thessaloniki Fair, emphasizing fiscal responsibility while announcing targeted measures. He addresses tourism challenges and political landscape amid reduced protests.
In a significant address at the Thessaloniki International Fair, Kyriakos Mitsotakis, Greece's Prime Minister, outlined the country's economic trajectory, emphasizing fiscal prudence while introducing targeted measures to stimulate growth. The fair, a cornerstone event in Greece's economic calendar since 1926, serves as a platform for government leaders to present their economic vision.
Mitsotakis underscored his commitment to responsible financial management, aligning with the European Union's post-pandemic fiscal regulations. These rules, designed to curb excessive spending, reflect the EU's strategy to maintain economic stability across member states. Greece, having emerged from a prolonged financial crisis that lasted from 2009 to 2018, remains cautious about potential economic pitfalls.
Despite this cautious approach, the Prime Minister announced several initiatives aimed at bolstering the economy:
- Pension and minimum wage increases
- Measures to enhance exports and productivity
- Strategies to address housing shortages
- Programs to encourage youth engagement in agriculture
- Policies to tackle Greece's low birth rate, one of the lowest in the EU
A notable measure includes a 2 billion euro ($2.2 billion) low-rate mortgage program for young families, partially funded by the European Union. This initiative aligns with Greece's efforts to address demographic challenges while stimulating economic activity.
Addressing the burgeoning tourism sector, which contributes approximately 20% to Greece's GDP, Mitsotakis proposed measured approaches to manage growth. He announced increased disembarkation fees for cruise ship passengers, particularly in popular destinations like Santorini and Mykonos. Government officials suggested the current fee of 35 cents could rise to between 10 and 15 euros, reflecting a significant increase aimed at managing tourist influx and generating revenue.
The Prime Minister also touched upon the political landscape, asserting his party's role as a stabilizing force in Greek politics. This claim comes in the context of recent European elections where his conservative party, despite seeing a decline in votes, still significantly outperformed the opposition parties.
"I have not come with a bag full of gifts."
This statement underlines the government's commitment to fiscal responsibility, even as it introduces targeted economic measures.
The political context in Greece remains complex, with major opposition parties like Syriza and PASOK facing internal challenges. Syriza, which governed Greece from 2015 to 2019, is grappling with leadership issues, while PASOK is in the midst of a leadership contest.
Notably, the traditional protest marches accompanying the fair were significantly smaller this year, with local police estimating only 7,500 participants across three separate demonstrations. This reduced scale of protests may reflect changing political dynamics or public sentiment.
In his speech, Mitsotakis also highlighted regional projects and appointments, including the nomination of the Central Macedonia regional governor as Greece's next EU commissioner. This move appears strategic, given Thessaloniki's position as Greece's second-largest city and the surrounding region's political significance.
As Greece continues its economic recovery, balancing fiscal prudence with targeted growth measures remains a key challenge for the government. The country's journey since joining the EU in 1981 has been marked by significant economic fluctuations, but recent years have shown steady growth since 2017. With 21 seats in the European Parliament and a unicameral national parliament, Greece's political and economic decisions continue to play a crucial role in its future trajectory within the European Union.
