The growth of the Greek economy is on a convergence path with the European economy, Prime Minister Kyriakos Mitsotakis said during a discussion at a Morgan Stanley conference in London. At the same time, he assured that he does not intend to “put on the brakes” ahead of elections, as governments do, and expressed optimism about the 2027 polls, as citizens “know that the country needs a stable government.”

“I think our growth today is qualitatively different. At the end of the day, it is a convergence story. I examined the data published by Eurostat in terms of real net disposable income. I stress ‘net’ because we have reduced taxes significantly. We have seen an increase – once you take inflation into account, this is real net disposable income – of 22% over the last six years,” the Prime Minister said, adding that “this should be a story of convergence, of coming closer to Europe – and why not overtake Europe in at least some policy areas.”

In the same context, Mitsotakis assured that the government will remain committed to reforms, even though it is in its third year in office. “There is a tradition for governments to ‘put on the brakes’ as elections approach. I don’t intend to do that. I will continue with the important structural reforms, many of which will bring the next chapter in our growth path after the next election,” she noted.

“We have pleasantly surprised the markets without austerity measures.”

Mitsotakis also referred to the government’s fiscal policy mix, as the country, on the one hand, is keeping its commitments without austerity measures.

The policy of government’s policy mix is based on a number of factors.

“Greece is keeping its fiscal commitments, achieving significant primary surpluses, but it also has fiscal space to support households through tax cuts and to continue to promote an agenda that favors growth. I believe it is this combination of fiscal stability and a very rapid reduction of our debt as a percentage of GDP – I believe this is one of my key commitments, we must not forget that Greece inherited, as a result of the crisis and despite everything that happened with the Greek debt, a huge debt. I cannot sleep with a clear conscience when I know that we cannot bequeath this huge debt to the next generation,” he said.

“When I look at our debt projections, I think we have pleasantly surprised the markets, but we are achieving this without implementing austerity measures. And this is due to the underlying growth dynamics of the economy, the structural reforms that we have implemented, the capital inflows into Greece, and the investment-based growth that we are currently supporting. Because it is not only about the actual growth rates, but also about the composition of growth. In the past, Greece also had positive growth rates, but it was a growth that was fuelled by consumption and financed by debt. Today, this is no longer the case,” he added.

“When we came to power, investment as a percentage of GDP was at 11%, with the European average being 21%. There had been a net loss of capital formation in Greece. Now we are at 17%. So we have made significant progress, but we need to get to 20% or more. That, for me, is an agenda, not just for next year, but for the next five years. Because, looking at the election cycle, I have a very clear plan for where we need to go in the next five years. So we have to envision where Greece will be in 2030. Or, if I want to be more ambitious, where Greece will be in 2040,” he said.

“Greece currently has a candidate for the Eurogroup presidency”

Mitsotakis also referred to the candidacy of Kyriakos Pierrakakis for the Eurogroup presidency, which shows that Greece has regained its credibility.

“I believe that Greece has regained its credibility in Europe, and this allows us to have a bigger footprint than we would typically have. Greece has a candidate for the Eurogroup presidency today; he will be with you tomorrow. There are two candidates, a Belgian and a Greek. I don’t know what will happen, but the fact that 10 years after the financial crisi,s Greece can credibly claim the Eurogroup presidency is, I think, indicative of the progress we have made and of our ambition to play a role in European affairs.

“Elections in spring 2027”

Mitsotakis also referred to the elections, which he reiterated will be held in 2027, and expressed optimism that the New Democracy party is the only force with a credible proposal, while citizens “know that the country needs a stable government to ensure security and prosperity.”

“Some European countries are currently in a difficult situation because politics (politics) is not working. Politics in Greece works and will continue to work. I am convinced that this will continue to be the case after the 2027 elections because, at the end of the day, citizens know that the country needs a stable government to ensure security and prosperity. Right now, New Democracy is the only political force that has a credible proposal for the governance and progress of the country,” he said.

“That is why I am particularly optimistic about the 2027 polls. And, of course, I would like to point out to our audience that the elections will take place in the spring of 2027. I have participated in the proceedings of this conference many times. I remember the skepticism I encountered when I was here before the 2023 elections. The question then was: “Will you have an absolute majority?” I answered “yes”. Many people questioned it, but we did it. I remember that in April 2023, the polls showed that we would get 33% and we received 41%,” he added.