Reiterating that elections will be held in 2027 and expressing his optimism that New Democracy is the only force with a credible proposal, Prime Minister Kyriakos Mitsotakis emphasized, during a discussion at a Morgan Stanley conference in London, that Greek economic growth is on a convergence path with European growth. At the same time, he stressed that Greece “has regained its credibility in Europe and this allows us to have a greater footprint than we would typically deserve. Greece today has a candidate for the presidency of the Eurogroup, and will be with you tomorrow.”
Speaking about the progress and development of the Greek economy, he highlighted the following: “When we took power, investments as a percentage of GDP were at 11%, with the European average being 21%. There had been a net loss of capital formation in Greece. Now we are at 17%.”
Kyriakos Mitsotakis: The government will remain committed to reforms
“I believe our growth today is qualitatively different. At the end of the day, this is a convergence story. I looked at the data published by Eurostat regarding real net disposable income. I emphasize ‘net’ because we have significantly reduced taxes. We have seen an increase – after accounting for inflation, this is real net disposable income – of 22% over the last six years,” the Prime Minister stressed and added that “this must be a convergence story, approaching Europe – and why not surpass Europe in at least some policy areas.”
In the same context, Mr. Mitsotakis assured that the government will remain committed to reforms, even though it is in its third year in office. “There is a tradition for governments to ‘hit the brakes’ as elections approach. I don’t intend to do that. I will continue with significant structural reforms, many of which will bring the next chapter to our development path, after the next elections,” he noted.
“When I look at the forecasts for our debt, I believe we have pleasantly surprised the markets”
Mr. Mitsotakis also referred to the fiscal policy mix followed by the government, as the country maintains its commitments without austerity measures.
“Greece is meeting its fiscal commitments, achieving significant primary surpluses, but also has fiscal space to support households through tax relief and continue to promote a growth-friendly agenda. I believe it is this combination of fiscal stability and very rapid reduction of our debt as a percentage of GDP – I believe this is one of my key obligations, we must not forget that Greece inherited, as a result of the crisis and despite everything that happened with Greek debt, a huge debt. I cannot sleep with a clear conscience when I know we cannot bequeath this enormous debt to the next generation,” he said.
“When I look at the forecasts for our debt, I believe we have pleasantly surprised the markets, but we achieve this without implementing austerity measures. And this is due to the underlying growth dynamics of the economy, the structural reforms we have implemented, the capital inflows into Greece, the investment-based growth we are currently supporting. Because it’s not just about real growth rates, but also about the composition of growth. In the past, Greece also had positive growth rates, but it was growth fueled by consumption and financed by debt. Today this is no longer the case,” he added.
“When we took power, investments as a percentage of GDP were at 11%, with the European average being 21%. There had been a net loss of capital formation in Greece. Now we are at 17%. We have therefore made significant progress, but we need to reach 20% or more. This, for me, is an agenda not just for the next year, but for the next five years. Because, looking at the electoral cycle, I have a very clear plan for where we need to go in the next five years. We must therefore envision where Greece will be in 2030. Or, if I want to be more ambitious, where Greece will be in 2040,” he said.
On Kyriakos Pierrakakis and the Eurogroup presidency
Mr. Mitsotakis also made reference to Kyriakos Pierrakakis’s candidacy for the Eurogroup presidency, something that shows Greece has regained its credibility.
“I believe Greece has regained its credibility in Europe and this allows us to have a greater footprint than we would typically deserve. Greece today has a candidate for the presidency of the Eurogroup, and will be with you tomorrow. There are two candidates, a Belgian and a Greek. I don’t know what will happen, but the fact that 10 years after the fiscal crisis Greece can credibly claim the presidency of the Eurogroup is, I believe, indicative of the progress we have achieved and our pursuit to play a role in European affairs,” he emphasized.
“Elections in spring 2027”
At the same time, Mr. Mitsotakis referred to the elections, reiterating that they will be held in 2027 and expressed his optimism that New Democracy is the only force with a credible proposal, while citizens “know that the country needs stable government to ensure security and prosperity.”
“Some European countries are in a difficult situation today because politics doesn’t work. Politics in Greece works and will continue to work. I am convinced this will continue to be the case after the 2027 elections, as, at the end of the day, citizens know that the country needs stable government to ensure security and prosperity. At this moment, New Democracy is the only political force that has a credible proposal for governing and advancing the country,” he said.
“For this reason I am particularly optimistic about the 2027 ballot box. And, of course, I would like to point out to our audience that elections will take place in spring 2027. I have participated in the work of this conference many times, I remember the skepticism I faced when I was here before the 2023 elections. Then the question was: ‘Will you have an absolute majority?’ I answered ‘yes.’ Many questioned it but we made it. I remember that in April 2023 polls showed we would get 33% and we received 41%,” he added.
