Distinguished Mr. President, ladies and gentlemen, ministers, regional governor, Mr. Mayor's representative, our distinguished guests, ladies and gentlemen, we warmly thank you all for your presence at the Thessaloniki Summit. We especially thank you for tonight's dinner, which we all know took place a day later, and you made an effort to all be here with us. It is a great honor for us to have the Prime Minister, Mr. Kyriakos Mitsotakis, with us tonight. Your presence constitutes a double honor. It is a great honor for our association, the only social partner based outside Athens, but also for the industry sector in general. It is also an honor for our city, Thessaloniki. I know well your love for the city. Recently, we inaugurated an emblematic project that, thanks to your persistence, was completed and will give a developmental boost to the entire region. This morning, you visited the flyover, another great project that is progressing very quickly towards its completion in 2027. Now that the road is open for the construction of the pier to proceed, the long-awaited connection with the motorway and gradually with the railway will finally be made. Thessaloniki can play a role in the regional economy of the 21st century. However, allow me, Mr. President, to mention something else that highlights the special bond you have with Macedonia. Perhaps many of those present here today do not know that your grandfather, Kyriakos Mitsotakis, participated in the liberation of Siatista with the body of volunteer judges during the Balkan Wars. However, it is extremely important that today's meeting, Mr. President, is taking place in this specific context. We are in the midst of international developments in the US and Europe that the whole world is following with great anxiety and which are shaping critical balances for the prospects in Europe and the Balkans. All of course have a strong impact on business, where the big stake is competitiveness and the need to strengthen investments, the necessary and particularly expensive green transition, and the great race in the field of artificial intelligence and digital transformation, which together make up a very difficult equation, especially for us in industry. It is now an imperative need for European and Greek businesses to be freed from the bureaucracy of Brussels and the cost of regulatory compliance, an issue that is also one of the main proposals of the Draghi report. Europe needs bold decisions to improve the competitiveness of industry, and this should be a pan-European goal. In this new, very complex reality, Greece will strengthen and must further strengthen its international role. We recognize, of course, that thanks to the correct practices of your government in recent years, significant steps of progress have been made. Today, our country maintains a growth rate higher than the EU average, and we must continue with the same orientation for our country to adopt the longed-for new productive model that we have all been discussing lately. We believe that in this new productive model, the role of industry can and must be catalytic, and I know you believe this too, Mr. President. In closing, I would like to emphasize that Greek industry constitutes a national wealth, it has always supported the Greek economy, it supports society, and especially in the periphery of our country, where it has a great social impact. The more the government supports industry, the more room industry will have to reciprocate this support and offer even more to the country. I am sure that everyone in this room is eager to hear the views on all these issues from the President, and we look forward with anticipation to the discussion that will unfold with the excellent journalist, Mr. Plaka. On behalf of the Hellenic Federation of Industries, Mr. President, we warmly thank you for your presence and invite you to the podium to proceed with the discussion.
Thank you very much. I hope you are well. Madam President, thank you. Mr. President, I also welcome you in turn to the 8th Thessaloniki Summit. Ms. Saranti, in her introductory speech opening the works of the Thessaloniki Summit, referred characteristically to the international environment in which the discussion is unfolding. As she stressed, the summit is taking place against the backdrop of international developments that the whole world is following with great anxiety and which are shaping critical balances, especially for the prospects in the Balkans. All of these have a strong impact on business. Before we talk about the economy, Mr. Prime Minister, I would like us to look at the big picture, the picture of developments which are many and rapid lately, both at the level of relations between the two sides of the Atlantic and at the level of Europe, of course, in Ukraine, in the Middle East. A little while ago, as we know, you completed a teleconference, the second summit convened by Mr. Macron with European leaders on Ukraine, and I would ask you to start from there, to tell us what was discussed in this meeting. Mr. Plaka, first of all, I would like to thank you for the kind invitation to participate in the 8th Thessaloniki Forum, an institution in which I have participated several times, and to tell you also, as you mentioned, that a teleconference with the French President and several of my counterparts has just been completed, focusing on developments in Ukraine and beyond, and what Europe's response should be to these tectonic geopolitical changes that are taking place in recent months. And I would tell you that the answer I will give you is connected to a degree with the introductory remarks I heard regarding existential issues concerning the European continent and the European Union as a whole. I have spoken many times about the need for Europe to wake up from the geopolitical and economic lethargy in which it has unfortunately fallen for quite some time. And unfortunately, recent developments and this different view of things from the United States now compel us not just to see the truth in the face, but to act with great speed and to implement decisions that we have been discussing here for a long time. Whether we are talking about the formation of a defense policy that will allow Europe to project deterrent power on its own, without being constantly and absolutely dependent on the United States, a critical issue for our homeland, and I am particularly pleased that the President of the European Commission has now officially recognized the need to give more fiscal flexibility to member states so that they can spend more resources on defense. This was a long-standing request of our homeland for several years. We have reached the point where Europe finally seems that it will do something about the competitiveness issues of the continent, but we will discuss them, I imagine, in the continuation. Issues such as energy costs, our role in this new world of artificial intelligence, the bureaucratic complexities, and the great administrative burden we impose on our businesses. These are issues I have been talking about here in Europe for a long time. The way we protect our borders, the balance between a strict but fair policy on illegal immigration combined with the need for us as Europeans to be able to define who are those who will come to our continent. All these are issues in which Greece has been a protagonist in recent years. However, we have reached a point now where, with the occasion of the developments in Ukraine, it is time to take decisions, and I estimate that the next European Council, the regular European Council, because it is very likely there will be an extraordinary European Council before the regular one in March, will be one of the most critical European Councils, because there we will be called to endorse, to shape proposals from the European Commission which will finally allow us to be able to face these challenges, so that we are not simply, as the European Union, I am talking about, an observer of developments, but to be able to align our economic power with our geopolitical footprint.
Mr. President, understanding the meaning of your answer, I understand that you also believe that the European Union, as an actor in the international game, has lost ground and must regain it. I want your comment on this, and of course, on the stance of the United States and whether, with the moves we see and the initiatives being taken without consultations, the institution itself and the role of the North Atlantic Alliance are in danger.
We are not at that point, fortunately, Mr. Plaka. However, there is no doubt that we are talking about a different world, and we must realize this. The rules that have been in force for decades may no longer apply, and this compels us, not only as Greece but also as Europe, to face this new reality that is taking shape. I personally believed and believe in the need for the transatlantic alliance, and I believe it is very important that we continue, and we do this as Greece, to be able to speak with the new American administration and with the American president openly, honestly, without meaning that we agree on everything. The Greek Foreign Minister will be in New York representing our country at the Security Council, and then he will be in Washington to have meetings with the American Secretary of State and with the shapers of the new American policy. So we must continue to communicate with the United States. We cannot at this moment claim that within one or two years Europe can replace the United States as a defensive power that can project such deterrent power as to replace the United States and the role they play within NATO. We must be realistic about what we can aspire to. And of course, as far as our homeland is concerned, we must preserve this strong relationship we have built with the United States in a logic that may seem more managerial, I would say, but by clearly putting on the table what Greece can and offers at this moment to the United States as an ally in a difficult and complex region of our planet.
Mr. President, we are in a primarily economic forum. The framework of the demands of the SEV, the industrialists, production in general, the Greek economy, was also set by Ms. Saranti in her introductory speech. Addressing you, in the previous two days of the conference proceedings, I spoke with several people who are also here today in the hall, and they conveyed to me a series of concerns or requests addressed to the government. They told me about delays in the development law and in programs implemented with EU funding. They also conveyed to me that our country is among the last in productivity, and they said that for the country to recover and reach the European average, we need to reach investments of 11 billion euros every year, that is, about 13% of GDP. And I want to take this opportunity and your presence here at the summit to convey to us what your policies are for supporting industrial production on the one hand, and for attracting investments. We had the opportunity with the responsible minister to present many times our vision for what we call the productive transformation of the Greek economy, in which industry, manufacturing, extroversion, exports play a central role. And obviously, being in Northern Greece, I cannot but recognize that this is where the heart of Greek manufacturing beats, and dynamic companies are currently leading this new effort we are making to be innovative and export-oriented, producing products that have real added value. And for this reason, we have also made significant interventions in the development law, directing much more funds now towards manufacturing, supporting research and development with very significant tax incentives, which I am sure the ladies and gentlemen here, representing industry, know, by making significant interventions in our industrial areas, which we must strengthen more. And of course, apart from national policies, by also fighting a European battle, because there is no doubt now that Europe, in issues of compliance obligations with a series of laws and regulations, has, I think, exceeded the limits of what is considered reasonable and the burden we impose, especially on manufacturing and industrial companies. And it is a given that we must go for a significant horizontal simplification of European rules, especially when we talk about compliance with sustainability requirements. It is an issue that is absolutely critical, absolutely critical not only for the Greek but for European competitiveness. Our national stake is the increase of investments. We have already increased the investment rate significantly compared to where we were in 2019. We are not, however, where we want to be. We are not yet at the European average. But investments, to happen, presuppose, first, a stable political framework. That is why I insist so much on stability. I imagine we will return to this issue in the continuation of our discussion. They presuppose easy financing. Banks can take more steps in this direction, but they are certainly more willing to finance companies with development plans. They presuppose help from the state and from Europe. For example, the loans we have given through the Hellenic Corporation of Assets and Participations or other tools we give through the Hellenic Development Bank. They presuppose tools like those of the development law, which, I emphasize, will be targeted, because in the past we had development laws that tried to do everything and, forgive me for putting it so simply, ultimately had a very limited impact on the implementation of a national strategy. They presuppose the acceleration of strategic investments, which do not only claim money but also a more favorable regulatory framework. Yes, we must re-examine issues related to licensing. A great effort has been made to simplify business licensing, but we must do more in this direction. And of course, the absolutely critical parameter concerns cost factors. You know very well that this government has significantly reduced employer contributions. It was a long-standing request of businesses. It has given reasonable flexibility to manufacturing regarding labor legislation, and this was a long-standing request of manufacturing which we were able to implement. And of course, there is the big issue of electricity costs, which has a European dimension, about which I have spoken many times, for which I am waiting for proposals from the European Commission. As I want us to be more targeted in the new financial tools we have, whether we are talking about the Modernization Fund or the Innovation Fund, which are significant financial tools that we want to direct much more to support manufacturing and industry.
I will keep what you said about energy costs to address it immediately after, but first I want to ask the following. You spoke about targeted measures. Can these targeted measures, Mr. President, here we are talking to members of the SEV, which may be a social partner with nationwide scope, of course, but its headquarters is in Thessaloniki and has a particular interest, if you will, in Northern Greece, can they have a geographical criterion? Look, you know very well that as for the support we provide, we are bound by the European map of regional aid, and we also know very well that one of our great challenges is what we call double convergence, for all regions of the country to be able to converge towards the European average. And there is no doubt that Northern Greece is one of the dynamic regions of our country, it is doing better compared to other regions, so we must always take this reality into account. I sought data from the Ministry of Development. We already have 67 projects with an investment budget of over 200 million euros which are included in the development law. But I want to say something else. I know many investments are being made without necessarily needing support from the state. This support obviously also falls within the overall fiscal constraints. The most important thing, however, and I am addressing a business audience, is for you yourselves to believe in the prospects of your companies, the capabilities you have to be able to invest and to maintain what exists today in Greece: economic stability, political predictability, as something which I assure you is not at all a given in many other European countries. We have left the crisis era behind us for good. Greece is growing at rates much faster than the European average. However, future growth also passes through your own willingness to finally take business risks and to invest and to make your visions and your plans a reality. This is not the job of the state. The job of the state is to create the appropriate framework. I will say it again, we are not where we want to be, but we cannot fail to recognize that we have made great progress and that we have a plan for where we want to reach in the next two years. You almost implied in your previous answer that within this framework that must be created and the support for entrepreneurship is also the energy cost. Members of the SEV told me, speaking as I told you earlier, how the energy cost concerns them and has affected their competitiveness. This, Mr. President, as you know, in turn has affected prices, has affected inflation, and I want to know what your policies are for dealing with both energy costs and inflation.
First of all, on the inflation front, we have good and less good news. The good news is that food inflation has essentially been zeroed out. However, we still have a problem with services inflation, and it is something that must occupy us. Looking ahead, the country has a very specific energy policy. We want the green transition because we know very well that in the medium to long term, energy produced from the sun and wind will be cheaper and will help us lower the overall energy cost in our homeland. We are among the European leaders. We have a specific plan for how we will reach the targets we have set, and we will implement it. At the same time, however, we know very well that we must find ways to make the European energy market function as a single market, because today it does not function as a single market. We see very large price differences. Southern Europe, I would say, has been punished by the lack of interconnections with Central and Northern Europe. That is why I am setting as a critical issue at the European level European investments in interconnections that will allow us, as Europe, to function with a market that can buy and sell electricity depending on where it is cheaper. Greece is now an energy exporter, and this is good because it means we are cheaper than our neighbors, we export to our neighbors, but it does not mean that we are necessarily cheap if we look at the European market as a whole. So there are national policies, and there are also European policies, and I am waiting from the President of the Commission, with whom I have communicated and have left specific proposals many times, on how we can overall lower the energy cost in Europe. We cannot be competitive compared to the United States, compared to China, with this energy cost which at this moment burdens both businesses and our households, which, I emphasize, we have managed to protect to a large extent. However, the problem is much more structural, and Greek solutions alone are not enough. There must also be European answers.
Mr. President, I chose to start our discussion by putting the external environment and developments because the economy is affected by both the external and the internal environment. You previously spoke about the need for political stability, and to talk about the economy, we must also talk about the political framework and the political climate. I think no one disputes this. There is political polarization lately, Mr. President. Your opposition is also putting the blame for the cover-up in the Tempi case. We have polls that talk about a rise in anti-systemic votes. You say the political climate is toxic. We saw yesterday in parliament the political tension with Mr. Famellos conveying the questions of the Supreme Court prosecutor who lost her 39-year-old son and hinting at whether it is connected to the Tempi case, even from the government. I therefore want, Mr. President, a question on three axes. First, if you want to comment on what was said yesterday in parliament and in the public dialogue in the public sphere. Second, to ask you, Mr. President, if a government can proceed in such a political environment. And third, if you can tell us when the issues pending from the pre-investigative committee and the pre-scheduled debate in parliament from the opposition will be put on the agenda. Do you want it to start, Mr. Prime Minister?
No, what we are seeing is not polarization. It is a vulgar toxicity and an attempt to drag the country's political life into a swamp with only one goal, ultimately, to have political destabilization and to hurt the government and the Prime Minister personally. What we are seeing happen with the occasion of the Tempi tragedy, I have been in politics for many years, you know, I have heard many things. This really surpasses every limit, every limit. And allow me to speak a little more personally and emotionally. I have heard a lot, you know, in my political journey. In the era of the memoranda, we heard that we were traitors and Germanophiles. We have heard that we are a gang of pedophiles, that we are smugglers. Now they have even called us murderers. I want to say it clearly, as I feel it. Enough with this misery. These things must stop. We cannot continue in this climate. And it is not only, you know, it is not only the trolls of the internet. These are adopted in an even more vulgar way, because if they at least had the guts to come out and say them openly in the form of questions, they are conveyed to parliament and we reach the point today, in the midst of all these developments I told you about before, to be faced with this political climate in our homeland. An unspeakable tragedy, which I understand, I understand what emotions it can cause, that some use it not to find the truth, not to start the trials, I think they have no interest in all this, not to assign responsibilities, not to fix our trains. The basic issue concerning the government, because the rest concern justice, is only to be able to create an environment of great turmoil and, I would say, an attempt to do what exactly? What is the alternative political proposal that exists in the country today? If they want to come to parliament, to come and try to bring us down. But we are a country that has institutions and has constitutional order, and this government is elected. The government is for four years until 2027, and it will continue its work and will put it to the judgment of the Greek people when the four-year governance cycle is completed. And to say one more thing. We have lived through a lot as a country. We have lived through the Marfin case, we have lived through the squares of the indignant, we have lived through the tragedy of 2015. There is no social and economic substrate today that would cause such a reaction. Something else is happening. A legitimate demand, which I will say, I understand it first, for justice to be served and for us to be able to really offer our homeland safe and modern railways. But for this to be turned into a climate which at this moment, in all the years I have been in politics, I have never experienced such a thing, the opposition has tremendous responsibilities. The entire opposition, I am not referring only to the most extreme who continue to chew the same conspiracy theories which have been essentially answered one after the other. The systemic parties, the official opposition which directly questions justice, SYRIZA, which with even more misery adopted these references. A tragic incident, a person died, we don't know what has happened today, he was buried, and to be left implying that behind this is the government and personally the Prime Minister. I want to send a clear message here and with the opportunity you gave me with this question. I have a duty. Today, my first responsibility is to keep the ship of our homeland steady in the midst of these extremely turbulent times. I took on this commitment, I will fulfill it. The others can say whatever they want. The constitution provides for clear procedures. And since you asked me about parliamentary order, let me tell you that I am still waiting for the proposal from PASOK, which has been pre-announced. I am waiting for us to go to parliament to discuss, to speak, for the masks to fall, to dismantle one by one all the conspiracy theories which were put out, and to answer with honesty and integrity to the Greek people about what we have done, what we will do, to speak honestly about any mistakes that may have been made. I have never hidden. If the opposition is not in a position to organize and make a motion of censure, I assure you that immediately after the publication of the relevant report by the National Transparency Authority, the government will immediately go to parliament for a pre-scheduled debate so that everyone can express their views, and the Greek people, who today, yes, is suspicious and yes, may believe many things which I consider not to be real, to hear this discussion and draw its conclusions.
