Greek Deputy Prime Minister Kostis Hatzidakis has dismissed spending promises made by opposition political parties as false and unachievable under updated European Union fiscal rules.
Speaking in an interview with radio station Mega News, Hatzidakis said opposition pledges that cross budgetary boundaries set by European authorities lack financial credibility and will fail to materialize.
Hatzidakis serves as Deputy Prime Minister in the ruling New Democracy administration led by Prime Minister Kyriakos Mitsotakis. New Democracy, Greece's primary center-right political party, secured re-election after campaigning on a platform of fiscal discipline and economic stabilization following years of international bailouts.
Hatzidakis pointed out that rival parties promised far more than New Democracy during both the 2019 and 2023 national election campaigns. He stated that Greek voters demonstrated political maturity by choosing the party that promised the least, namely New Democracy, because its pledges were grounded in realistic economic capacity.
Opposition spending pledges and fiscal rules
The European Union updated its framework of budgetary governance rules to enforce strict fiscal deficit limits and public debt sustainability targets across member nations. Under these newly adopted EU fiscal guidelines, Hatzidakis stressed that any campaign promises exceeding established spending ceilings are inherently false.
While opposition parties retain the right to put forward expansive proposals, Hatzidakis insisted those promises cannot be considered reliable. He emphasized that the fundamental difference with New Democracy is that the commitments made by the ruling party will actually be carried out.
Hatzidakis cited specific examples of what he described as unachievable opposition promises. He noted that PASOK, Greece's main center-left social democratic opposition party led by Nikos Androulakis, has promised to reinstate a 13th annual pension payment.
Hatzidakis stated that granting a 13th pension check would cost 2.5 billion euros. He revealed that the government invited PASOK representatives to visit the General Accounting Office to examine the official fiscal calculations, but the opposition party refused.
The General Accounting Office functions as the independent state agency responsible for auditing public spending proposals and calculating their precise impact on the national treasury.
Hatzidakis also highlighted promises made by former prime minister Alexis Tsipras, who advocated free public transport tickets for all citizens after Androulakis proposed free transit passes for young people. Furthermore, Hatzidakis pointed out that opposition figures began promising to forgive outstanding loans starting last week.
Speaking as a Greek citizen, Hatzidakis said it created a negative impression that certain politicians fail to learn from recent economic history. He added that making unsustainable promises ultimately damages the opposition parties themselves.
Four year strategy and governance
Hatzidakis warned that if government officials suddenly began acting like political Santa Clauses, voters would not believe them. He noted that voters have observed how the administration operates over recent years and understand its commitment to household fiscal management and compliance with EU obligations.
In his role as coordinator of New Democracy's policy program for the upcoming four-year term, Hatzidakis confirmed that the government will continue to operate under this disciplined approach.
He revealed that Prime Minister Kyriakos Mitsotakis will not restrict his upcoming policy address to measures taking effect in 2027. Instead, the prime minister will outline national priorities reaching toward a 2030 horizon, setting out binding commitments that can be fully implemented.
Tax reform and self-employed relief
Addressing taxation policy, Hatzidakis recalled his former tenure as Minister of Economy and Finance, when he introduced presumptive tax criteria for self-employed professionals across Greece.
He reiterated that the presumptive tax system was designed as a temporary mechanism to establish tax fairness, ensuring that salaried employees and pensioners do not feel they bear the national burden alone while others evade taxation.
Hatzidakis explained that as digital technology advances, modifications to the presumptive tax system are being introduced. Adjustments were implemented last year and two years ago, and further modifications will be announced this coming Saturday.
The upcoming tax relief will specifically target consistent, compliant taxpayers. The modifications will be tied to compliance with digital tracking systems, including the state MyData platform, electronic consignment notes, and digital invoicing rules.
MyData is the digital platform operated by Greek tax authorities to record corporate transactions in real time, serving as a primary tool to reduce tax evasion.
Hatzidakis noted that presumptive tax assessments remain legally contestable in court, though only a few hundred taxpayers have formally challenged their tax figures.
State revenue and structural reforms
Despite reducing 83 individual taxes and insurance contributions, Hatzidakis stated that state budget revenues have increased. He explained that while a small percentage of this revenue growth resulted from inflation, the primary drivers were broader economic growth and government measures to curb tax evasion.
Fiscal enforcement efforts carried out in 2024 secured an additional 1.8 billion euros for the 2025 state budget. Hatzidakis highlighted major progress in closing Greece's Value Added Tax (VAT) gap, which shrank from 23.5 percent in 2018 when Greece ranked last in Europe down to 9 percent.
At 9 percent, Greece's VAT gap is now lower than the European Union average. Hatzidakis argued that citizens who favor national reform should credit the government for adopting modernizing policies while maintaining social justice.
Economic growth and investment outlook
Regarding the European Union Recovery Fund, Hatzidakis expressed confidence that the program will conclude in a few months without losing any allocated funds, despite its high level of administrative complexity.
Looking ahead to the 2028-2034 European funding framework, the Greek government counts on continued community financing through ESPA regional development programs, agricultural subsidies, and the newly approved Social Climate Fund.
ESPA represents the primary framework for distributing European Structural and Investment Funds in Greece, while the Social Climate Fund provides dedicated EU financing to assist vulnerable households during the transition to green energy.
In addition to public European funds, the government anticipates further growth in private capital investment. Between 2019 and 2025, private investment in Greece grew by 83 percent, compared to an average growth rate of just 5 percent across the wider European Union.
Hatzidakis defended investments in existing commercial enterprises, explaining that investors who purchase companies seek to expand operations and create jobs, benefiting employees and the broader economy. He also noted that real estate investment has recovered following a decade of stagnation.
Furthermore, greenfield investments, which involve building new commercial facilities from the ground up, have increased and are projected to grow further under a pro-investment administration.
Concluding his remarks, Hatzidakis warned that economic progress is difficult to achieve but easily destroyed. He cautioned that if populism, political instability, and uncertainty prevail, the country's positive trajectory will be jeopardized, as investors will not deploy capital in an unfriendly environment.
