ATHENS — The country’s new conservative prime minister, declaring that Greece was “no longer the black sheep of Europe,” on Saturday announced a series of corporate and individual tax cuts, along with a plan to encourage investment.

Prime Minister Kyriakos Mitsotakis outlined the measures, intended to bolster a country dogged by years of austerity and the vestiges of a decade-long financial crisis, at a trade fair in the northern port of Thessaloniki as thousands protested outside to demand greater rights for workers.

Mr. Mitsotakis replaced his leftist predecessor, Alexis Tsipras, in July with promises to give the slowly recovering economy a lift by attracting foreign investors with pro-business policies that his New Democracy party has long promoted.

The cuts, which included taxes on corporations, dividends and people in the lowest income tax bracket, were detailed before an audience of Greece’s political and business elite.

Legislation to be presented in Greece’s Parliament over the coming weeks is expected to remove obstacles to investment and accelerate privatization projects. Incentives for would-be investors include a simpler process for the issuing of environmental permits and less bureaucracy, he said, adding that new investments were in the works for the tourism, shipyard and defense sectors.

Mr. Mitsotakis said the government would “turn dynamically toward investments to create new wealth and boost employment.” Such steps, he said, along with a “bold wave of reforms,” would restore Greece’s credibility and allow it to better negotiate with its creditors.

Another initiative, introduced as part of the government’s bid to support families in a shrinking, aging population, involves a 2,000-euro payout for each new child.

Although Greece formally emerged from international bailouts in 2018, it remains under watch by its foreign creditors to ensure it meets its fiscal targets.

Mr. Mitsotakis has pledged to honor an agreement by the previous leftist administration to achieve a primary budget surplus — which excludes debt servicing payments — of 3.5 percent of gross domestic product for this year and 2020. However, Greek officials are pressing creditors to ease that target from 2021 on.



Source link

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

LEAVE A REPLY

Please enter your comment!
Please enter your name here