Greece’s VAT compliance gap fell below the 10% threshold for the first time in 2024, according to preliminary estimates, as announced by Minister of National Economy and Finance Kyriakos Pierrakakis during joint statements with European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra.

For his part, the Commissioner offered the European Commission’s warm congratulations on the country’s remarkable improvement in tax compliance and the effectiveness of its digital reforms. He made the remarks following a meeting in Athens with the Greek Minister of National Economy and Finance.

“Europe’s champion” in reducing tax evasion

Kyriakos Pierrakakis cited the findings of the European Commission’s recent Mind the Gap report, noting that Greece recorded the largest percentage reduction in the VAT gap of any EU Member State over the 2019–2023 period.

“And progress is continuing,” he stressed, adding that “the preliminary estimates for 2024 show that Greece’s VAT gap fell below 10% for the first time. This achievement means greater tax fairness, healthier competition for compliant businesses and higher public revenues, without an increase in tax rates”.

“Every euro that we recover from tax evasion is a euro that we can give back to every family, back to every citizen,” Mr Pierrakakis stressed.

As he explained, convergence with European averages is attributable to the acceleration of digital reforms. Key measures included:

• The universal implementation of the myDATA platform.
• The completion of the interconnection of cash registers with POS terminals.
• The expansion of electronic invoicing.
• The targeted use of funding from the Cohesion Fund and the Recovery and Resilience Facility.

According to the minister, these revenues create the necessary fiscal space for tax relief, measures to address the demographic challenge and targeted support for young couples.

€4.8 billion Social Climate Plan

The energy crisis and the cost of living were also at the centre of discussions with Mr Hoekstra. Mr Pierrakakis stressed that the green transition must be accompanied by social safeguards to ensure that neither household purchasing power nor the competitiveness of European production is undermined.

In this context, he announced that Athens is moving forward with its national Social Climate Plan, with a total budget of almost €4.8 billion. The programme focuses on improving the energy efficiency of homes, social housing schemes and sustainable transport infrastructure, giving priority to vulnerable households.

Hoekstra praises Greece during Athens visit

Speaking during his official visit to the Greek capital, Commissioner Hoekstra expressed Brussels’ full support for Greece’s economic and reform agenda.

“I would like to extend my warm congratulations to the Greek government and the economic team for the impressive results achieved in tax revenues and the fight against tax evasion,” the European Commissioner stressed.

He placed particular emphasis on the way Greece is making use of European funding, noting that “Greece has now become a tangible example for other countries to follow at European level, demonstrating how digital transformation and the targeted use of resources from the Recovery and Resilience Facility and the Cohesion Fund can deliver measurable results in promoting transparency, tax fairness and fiscal stability”.

Mr Hoekstra also welcomed the fact that these structural achievements go hand in hand with the objectives of green and clean growth, stressing that the EU “needs strong, competitive economies that also protect social cohesion”.

Concluding his remarks, the Minister of National Economy and Finance recalled that Greece will assume the Presidency of the Council of the EU in the second half of 2027.

As he noted, Greece looks forward to working closely with the European Commission to shape a simpler tax framework within the Single Market, with the aim of boosting investment and accelerating growth.