1. As we enter the final stretch into a likely early-2021 vaccine rollout, our economic policies face a subtle, but important, pivot:

First, countercyclical fiscal support remains macroeconomically appropriate. We extend existing schemes where necessary. 1/12
Second, employment policies need to shift away from just protecting existing jobs and toward creating new ones.

Third, this is the right time to launch our structural policies. As Project Syndicate and the Economist recently argued, ample fiscal space and monetary support 2/12
should be used smartly, and not wasted on handouts or expanding the government footprint in the private sector.

For us, this means an opportunity to implement our platform, which focuses on encouraging investment and boosting salaried employment. 3/12
Over the weekend, the prime minister made the following important economic policy announcements:

First, social security contributions for private salaried employment are reduced 7.5%. 4/12
Second, the solidarity income tax surcharge (levied up to 10%) is suspended for income generated from the private sector.

Third, an investment allowance, most recently implemented for expenditures on research & innovation, is now extended to green & digital capex. 5/12
Fourth, the first 100,000 net new jobs created will see their social security contributions covered by the state, with additional incentives for the hiring of long-term unemployed. 6/12
All of the above are set to sunset at the end of 2021. In the coming months we will work to secure the necessary fiscal space to extend them further, while ensuring medium term debt sustainability. 7/12
2. On the structural side, the prime minister highlighted twelve initiatives. Here is a subset:

First, a bill harmonising labour laws with ILO best practises. This landmark structural reform bill is set to be unveiled later this month. 8/12
Second, a shift in supplementary pensions from a pay-as-you-go defined benefit to a fully-funded defined contribution system.

Third, a land-use planning bill setting clear rules for new edifices and simplifies licencing procedures, particularly those related to renewables. 9/12
Fourth, a new public procurement framework to simplify and expedite procedures allowing for a faster rollout of public projects.

Modernisation of public sector hiring procedures with the introduction of specific written exams.

Fifth, further digitisation efforts of the state. A 5G auction in Q4 2020 and the setup of an innovative fund to invest in 5G services.

Sixth, the new insolvency code that introduces a unified code for restructuring and bankruptcy of individual and corporate debt. 11/12
We invite global investment to take advantage of our cyclical and structural reforms.

Greece is open for business.


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