Dear friends. Ladies and gentlemen. About a year ago, in my address on the occasion of the 21st annual capital link, no one, no one could have predicted the magnitude and nature of the challenges the world was about to face. Challenges that led Greece and every other country across the globe to make significant adjustments to contain the multifaceted consequences of this pandemic.
My top near-term priority is to continue to make sure that we keep jobs alive and that businesses and workers receive the support they need to get through this difficult period. And on this metric, I am confident that once we recover, the productive capacity of the economy won’t have been severely damaged.
But in spite 2020’s turbulence and everything that came with that, the main point I made last year is no less relevant. We were elected on a platform of reforms to change the country. I firmly believe that Greece deserves to be at the forefront of global policymaking. And I am confident that as the pandemic eventually subsides, Greece will be on the side of the winners, with a rapid recovery, fueled by the reforms that have already been put in place.
The pandemic also creates significant opportunities. Let me just give you one example. If anything, it has showcased that decentralized and remote working is here to stay. And in this case, I cannot think of many places to live that combine the set of advantages that Greece has to offer. A country blessed with natural beauty and a government focused on attracting global capital.
Following reduction in corporate income and dividend taxation, we are now slashing taxation of salaried employment, including lowered security taxes and a suspension of the solidarity income surcharge.
We are also introducing a series of tax incentives for Greeks of the Diaspora, but also foreigners who choose to work in Greece. We have a significant global talent pool that we can leverage to attract investments and enhance our growth prospects. When it comes to cutting down red tape for investments we have taken decisive steps to ease the burden for businesses by simplifying licensing and moving obstacles that retract them from doing what they are meant to: create products and services.
Numerous investments and reforms are also included in our plan to take advantage of the EU’s Recovery and Resilience Fund. The projects that comprise our proposal aim at closing the investment gap, as well as facilitating green transition and digital transformation.
Greece’s proposal was one of the first to have been submitted and has received a lot of positive feedback. It is even considered by some as a template for other Member States. Greece is punching above its weight.
And I am happy that the RRF was finally approved at the last European Council. At the same time, we are putting forward an inclusive agenda which addresses a lot of the grievances which essentially were the root cause of the economic crisis.
Issues such as income inequality. How do you bridge the digital divide? How do you make sure that you reward the dignity of work? Digitization remains at the forefront of our reform agenda, through a meticulous effort that began before the pandemic but has been accelerated since then. We are simplifying and digitizing numerous services and procedures that required physical contact. The digitization of the state is the primary vehicle to remove remaining barriers and fight bureaucracy. And digital training ensures access to all.
The process of cleaning up our banks is well advanced and our Hercules scheme is succeeding in reducing bad loans.
Our 5G auction is upon us. And 5G will be operational in major cities very soon. Greece is at the forefront of efforts to tackle climate change, with our plan to end dependence on lignite well under way. And investments in Renewable Energy Sources providing enormous investment opportunities.
Our efforts are bearing fruit. Greece has been mentioned as a rising soft power. Punching above its weight. Despite the pandemic, foreign direct investment is flowing in. Microsoft selected Greece to develop a data center. Volskwagen is launching a pilot project in smart mobility and electric vehicles in one of our islands.
Pfizer, impressed by the talent pool, recently announced it will be building a second hub in the city of Thessaloniki.
Ladies and gentlemen, it is undeniable that Greeks, as many other people across the globe, are going through tough times. And despite the targeted fiscal response that aims at protecting jobs and businesses, the majority and certainly the most vulnerable are severely affected by the pandemic. But we are confident that once we get over this, the recovery will be swift and long-lasting. And we invite the investor community to seize the opportunities that arise.
I wish every success to your conference and I am sure that the numerous government officials who participate will be able to present in detail the government’s actions for a more extrovert and prosperous Greece.
