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GreekReporter.comGreeceNew Democracy Chief's Speech in Thessaloniki Had Several Grey Points

New Democracy Chief's Speech in Thessaloniki Had Several Grey Points

a12c3798199d036844263b9d6105d14f_xlYou cannot accuse New Democracy chief Kyriakos Mitsotakis for blatant populism. Since he became the leader of the conservative party, he knew that he cannot go against the master of populism, Alexis Tsipras. So for his speech at the Thessaloniki International Fair he chose a more temperate approach, a “truth agreement” as his slogan is.
The problem is that under the existing conditions of deep recession and even deeper social crisis, temperance doesn’t seem to work. After an electoral majority that bought the big lie and brought SYRIZA to power, it seems that only a bigger lie would be more likely to sway a tired and disillusioned electorate.
To his credit, even though Mitsotakis calls for elections, his speech was not an election campaign speech. He didn’t mention the “e” word at all. He tried to appear realistic and sincere. Yet, many of the things he promised, need to be approved by creditors first.
For instance, he spoke of a 2 percent primary surplus, something that creditors have disapproved when the Greek side proposed it in current negotiations.
Or, when he spoke of a plan that would produce 120,000 jobs per year, he spoke of a 4 percent growth after 2018 without substantiating his claim.
He was specific though when he talked about reducing the single property tax (ENFIA), a sore point for Greeks, as Tsipras had pledged to abolish it and ended up raising it instead. Mitsotakis promised that it will be reduced in the medium run, 20 percent his first year in government and 10 percent in the second year.
Regarding taxes, the New Democracy chief said he will reduce the tax on businesses to 24 percent the first year — it is 29 percent now — and to 20 percent in the second year. He also said he will abolish the excise tax on wine and raise the VAT exemption threshold from 10,000 euros now to 25,000 euros in order to boost entrepreneurship. For farmers he said he will reduce VAT for farm supplies from 24 percent back to 13 percent.
At some point Mitsotakis said that Greece needs an “investment explosion” that would bring the Greek economy 100 billion euros in five years. Yet, he seemed to forget that at the moment the country is hostile to foreign investments and time is needed for trust to be restored.
Regarding taxation, he said the mandate of his administration would be to reduce taxes: Reduce tax rates for individuals with an introductory rate of 9 percent, reduce social security  contributions, reduce VAT to two rates of 11 and 22 percent, as opposed to 13 and 24 percent now. Again, since Greece is under bailout program conditions, such changes need to be approved by creditors first.
When he spoke of cuts in state spending, he denied accusations from SYRIZA that he is planning to lay off public sector employees. He said that no one will get fired and the public sector will be more flexible and productive by moving the right people to the right positions, based on meritocracy only. He said there is room for state expenditure reductions.
Overall, Mitsotakis avoided high notes and tried to appear friendlier and more down to earth, contrary to SYRIZA politicians who want to present him as a heartless neoliberal technocrat. His attacks on the ruling party were substantiated. But then again, the SYRIZA administration has given him plenty of ammunition in recent months with their flagrant interventions in justice and the banking system and the shamelessly authoritative attempt to control mass media. Whether he will be able to capitalize on the numerous government wrongdoings remains to be seen.

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