Presentation of the measures for the primary sector

Minister of Rural Development and Food, Kostas Tsiaras, on Monday presented a detailed breakdown of the four measures for the primary sector announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF).

The aim of these measures, Tsiaras underlined, is “the reduction of production costs in the primary sector, without the burdens of the past, by stimulating extroversion while expanding the country’s production potential.”

He pointed out that the ministry aims at “the further substitution of imports with domestic products, the strengthening of exports in products with a competitive advantage, the strengthening of domestic production, the creation of more jobs in the primary sector, the restructuring of production with high-value agrifood products and the ‘rebranding’ of Greek products.”

On his part, Development Minister Takis Theodorikakos stated: “The development ministry is proceeding with initiatives along three lines of action for the formation and implementation of a new production model for the country, following the reforms carried out by the government aiming at the convergence of incomes with the European average and the reduction of social and regional inequalities.”

Theodorikakos made the statements during the presentation of the government’s measures to support entrepreneurship and business productivity.

The minister reiterated that, in collaboration with the other ministries responsible, the development ministry is preparing the the details for a new production model, following the measures already implemented by the government, in an effort to boost industry and exports.

Theodorikakos announced increased tax incentives for acquisitions and mergers, for research and development with a total cost of 40 million euros, while he underlined that a Golden Visa will also be granted for investments of 250,000 euros in start-up companies as of January 1, 2025.

Hatzidakis announces additional 1.0 billion euros for Hercules Programme to reduce NPLs

A supplementary budget of 900 million euros for 2024 will be submitted to Parliament in the coming days by the Ministry of National Economy and Finance, in order to strengthen the Public Investment Programme and increase it to 13.1 billion euros,  National Economy and Finance Minister Kostis Hatzidakis said on Monday at a press conference detailing the measures that Prime Minister Kyriakos Mitsotakis announced at the 88th TIF. He said this amount will primarily come from two sources: the growth of the economy (the 2nd fastest in the European Union) and the fight against tax evasion.
At the same time, the minister highlighted four points for a modern and crisis-resilient economy:
1. Healthy banking system. The divestment of Eurobank, Alpha and Piraeus has been completed and that of National Bank is next. The 5th pillar was created with the merger of Attica Bank and PanCreta. Non-performing “red” loans have decreased from 40% in July 2019 to 7.5% in March 2024, with the help of the Hercules Programme. In total, they were reduced from 92 billion euros in 2020-2021 to 69 billion euros in 2023. The “Hercules” programme will be increased by 1.0 billion euros, in cooperation with the EU, in order to lower the “red” loans to the EU average.
2. Fiscal incentives for research expenses. New instances are being introduced for enhanced grant rates of 250-315% (from 200%) for scientific and technological research and 250% for start-up collaboration. The increase in start up visa limits means that investment does not only mean real estate, but also innovation. A new NSRF action of 350 million euros for mergers and financing of 50% of the investment costs of small and medium enterprises. Further grant of 10% for businesses that are the product of a merger. There will be a Patent Fund from the Hellenic Development Bank for the financing of international patents and the development of Minimum Viable Patents.
3. Creation of the National Investment Fund with an initial capital of 300 million euros. Black Rock will recommend the appropriate corporate structure and organisation by September 30.
4. Strengthening resilience against natural disasters, with the budget of the action having increased to 600 million euros. The new initiatives are as follows:
-20% discount ENFIA property tax discount for insurance against natural disasters for properties worth up to 500,000 euros.
-10% discount on properties of greater value as long as they are insured until 1/6/2025.
-Mandatory insurance from 1/6/2025 for businesses with a turnover of more than 500,000 euros.
-Mandatory natural disaster insurance from 1/1/2025 for all private and business vehicles.

Papathanasis: Greece ranks 4th for absorption of NSRF funds, 6th for recovery fund

The Public Investment Programme will increase to 13.1 billion euros this year and will rise further to 14.4 billion euros in 2025 and to 15.9 billion euros in 2026, Alternate National Economy and Finance Minister Nikos Papathanasis said on Monday, during a ministerial press conference to announce new measures to support the economy. The annual increase in resources amounts to 10-17%, with a 29% increase in the national leg, he said.
According to the minister, Greece now ranks 4th in the EU in terms of the absorption of the NSRF 2021-2027 and sixth in terms of the Recovery Fund (with the additional 1 billion euros that will disbursed in October, the resources will increase from 47.9% to 50.5%). A new request will be made in November.
In the loan sector, there are contracts for 339 loans, while 347,000 small and medium enterprises are being supported with over 1 billion euros. Of the 844 projects that have been submitted, 515 concern small and medium-sized enterprises. In total, 200,000 small and medium enterprises are supported by the NSRF Competitiveness programme.

Tourism Minister Kefalogianni announces new measures for tourism

Tourism Minister Olga Kefalogianni on Monday announced the introduction of a fee for cruise passengers who disembark at Greek ports, set at 20 euros per passenger for the popular destinations of Mykonos and Santorini and at five euros in other ports of the country during high season (June 1 – September 30). This fee will be 40% reduced in April and May and 80% reduced between November and March.
Kefalogianni said the measure is expected to bring 50 million euros in additional revenues and part of this will be added to the tourism ministry budget, to be used for improvements in tourism infrastructure and to upgrade the country’s tourism product. This will be accompanied by a series of actions to further develop the cruise sector in Greece, such as building infrastructure and incentives to attract smaller ships with high-income passengers, among others.
The minister also presented details of the Resiliency Fee charged in tourist accommodation and short-term leases from April until October, saying that the sums raised will go toward measures for the prevention and recovery from natural disasters and improved infrastructure to support Greece’s tourism product.
Lastly, she said that fee for smaller short-term lease properties will increase during the low season as well, ranging from 0.5-2 euros per day, while it will increase to 8.00 euros per day between April and October. In addition, no new short-term leases will be permitted in the 1st, 2nd and 3rd municipal quarter of Athens for one year, with a possibility of extending the ban further. The ministry is also examining a framework plan establishing operating and safety requirements to safeguard the quality of the tourism product.