Economy has stabilised, says Tsipras
THESSALONIKI: Greek Prime Minister Alexis Tsipras on Saturday vowed to lead his country to a post-bailout “rebirth” after eight years of cuts, offering millions of euros in handouts and promising to cut taxes and raise the minimum wage to bolster economic recovery.
“We know we have the strength and the knowledge to envisage, plan and accomplish our country’s rebirth,” said Tsipras at the Thessaloniki International Fair, here, where economic policy for the coming year is traditionally announced.
“Higher wages, labour market regulation and respect for labour rights... are a prerequisite for growth,” said Tsipras.
“The Greek economy is stabilised ... we are a normal country now.”
With “at least” €3.5 billion (RM16.77 billion) in fiscal room, Tsipras pledged to cut property and sales tax, boost the income of hundreds of thousands of farmers and middle-class Greeks and reconsider a planned pension cut next year agreed with Greece’s creditors earlier this year.
Greece is committed to a primary budget surplus “not counting debt repayments” of 3.5 per cent of gross domestic product through 2022, and 2.2 per cent through 2060, with average economic growth of three per cent a year.
Tsipras said his administration was “absolutely certain” that next year’s target could be achieved without the unpopular pension cut.
Once the data is verified for next month’s budget “we will explain to our European peers... that this measure is not only fiscally unnecessary, it is not structural and impairs growth,” he said.
Business tax would also gradually be scaled back from 29 to 25 per cent by 2022, said Tsipras.
“It is the least we can do to mend wounds, reduce great burdens and create a growth dynamic in the Greek economy,” he said, stressing that the handouts were “within the framework” agreed with creditors.