Deputy FinMin Skylakakis: Focusing on generating a virtuous investment cycle

The government’s economic policy is based on “generating a virtuous investment cycle, to change the economy’s trajectory,” Deputy Finance Minister for budgetary policy Theodoros Skylakakis said on Sunday in parliament.

At the three-day debate on the new government’s policy platform, Skylakakis said that “the Greece we got from the SYRIZA government has the lowest investment and highest unemployment rates in Europe; it invests less and expels its productive resources abroad.”

The country’s low investment ranking could have served as an opportunity to attract more business to Greece, but the last government failed to understand this.

The ministry’s plan is based on “an ambitious effort of savings” which will result from expenditure reviews at all ministries, improving the efficiency of all public utilities, e-governance, merging buildings, targeted hirings for health, educaton and security, and the abolition of ineffective or extraneous structures set up by the Syriza government, like an abundance of general secretariats, he said.

As the deputy minister explained, “First of all, we shall abolish the fictitious expenditure ceilings, which lead to a systematic underperformance of the budget and the extremely harmful to growth super-surpluses. In 2018 alone, we had an underperformance in the regular budget that approached 1 billion euros, something that contributed directly and decisively to the lower growth rate of that particular year.”

“The opportunities are plentiful, he said, but they will require time and great effort.”