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Mitsotakis: In a month of winning the elections I will cut taxes


For his plan to reduce taxes directly for domestic and foreign companies, but also to reduce the primary surplus agreed by Alexis Tsipras, New Democracy Chairman Kyriakos Mitsotakis said in an interview with the US network CNBC.Message inside and outside Greece that tax reform that will ease the burdens on citizens and businesses will become law of the state already in the first month of new governance sent by the President of New Democracy Kyriakos Mitsotakis.

In an interview given to CNBC’s global television network, which has been broadcast to all countries around the world since Wednesday morning, Mr. Mitsotakis stresses: «A radical and integrated tax reform will be one of the first steps of the next government, from the first month. It is time to send a very clear message to citizens and international markets that we are committed to a radical reform agenda, that we want to liberate the entrepreneurship forces in Greece and to support private investment while enhancing social cohesion. »

In his entire interview with journalist Silvia Amaros, the president of New Democracy also announces that after the first year of ND governance, he will negotiate with our European partners the reduction of primary surplus targets so that 80% of the additional fiscal space to lead to even greater reductions in taxes and social security contributions. Among other things, he notes that «the Greeks suffered a lot in the past ten years» have been burdened by SYRIZA’s excessive austerity and that «the next elections will concern the economy, jobs and disposable income».

So far, only a few extracts from the big interview given by Mr. Mitsotakis have been uploaded to the CNBC site, followed by the next day, as the international network chose to project the ND program as well as the a reporter – quoting polls – is likely to be the next government of Greece.

Let’s talk about the primary surplus: Greece managed to overcome the targets. Does not this send a positive message?

I believe that it sends the wrong message, in the sense that we have suffered too much austerity. The reason we have exceeded our goals is that the government has overrated the middle class because it wanted to create a larger surplus even from what it was asked to use for pre-election benefits. But this is a completely wrong policy. We must stick to our goals, but when it comes to fiscal space, what we need to do is reduce taxes.
I believe that tax cuts will also increase tax compliance in an economy where tax evasion trends are observed.
Mr Tsipras has agreed on primary surpluses of 3.5% of GDP by 2022. I consider this goal to be too strict. I have stated from the outset that I will respect the agreements that this Government has made. However, I have also made it clear to our European partners that, if we are able to complete real reforms, we should reward the reduction of the primary surplus targets. And that must be done as early as 2021 and 2022. Unfortunately, budgeting for 2020 is too close for some change to come into effect earlier. So what I ask is very specific: give me 12 months to convince our creditors and international markets that we really mean what we are saying. That Greece can really change itself and become the property of its reform agenda, so that the reforms we do not happen because we are imposing them, but because we believe in the reforms that we ourselves have proposed. Reforms that will boost development but also maintain their social character. So, if all this happens, we will do 12 months to discuss the renegotiation of the primary surplus targets.

That’s exactly what I wanted to ask you. Do you mean that your first year in the government will ask for a renegotiation of the target for a primary surplus of 3.5%?

I will do it in a spirit of good faith. I will speak with our European creditors.

How do you plan to reach out to these discussions?

In good faith and always in a spirit of cooperation. This is not a controversy. And finally, if we have a primary surplus in 2021 for example at 3% or 2.5%, this will not significantly change the wider sustainability of our debt. But even at a symbolic level it would be a reward for a country that is implementing substantive reforms. Also, my commitment that whoever

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