New Democracy: We need to break the ‘triangle of stagnation’

“I ask all of Nea Demokratia supporters to view this result with a feeling of responsibility and modesty. Greece has been through a lot. The country is not in need of celebrations, but a period of hard work”, said Kyriakos Mitsotakis at his post-electoral address.

Here is what we intend to do, if we win the snap national elections Tsipras is about to call:

1. We want to attract €100bn of investment over the next 5-10 years, double Greece’s growth rate to 4%, and achieve investment-grade status within 18 months. To do that, we need to break the vicious circle of what we call the ‘triangle of stagnation’. Greece needs a three-pronged attack with respect to reforms, fiscal policy, and the banks. At the heart of the triangle lies sound governance.

2. Nea Demokratia believes in taking ownership of the reform agenda. We will accelerate and front-load reforms and modernise Greece’s framework. We need to reform the pension system to reward work and disincentivise tax evasion, to introduce education reform to free schools and universities from arbitrary constraints, to improve the efficiency of the judicial system, to open up energy markets, to strengthen independent bodies. Above all, we need to create investment opportunities for global capital, and we will be greenlighting investments that the country so desperately needs.

3. We have already said we will be cutting taxes. That means the Enfia real estate tax lower by 30%, the corporate tax rate down to 20%, the dividend tax rate to 5% with additional cuts to social insurance contributions. This will be partly funded by reducing the government footprint. We will end the practise of over-taxation to fund voter handouts, introduce public-private partnerships and limit the growth of public spending. But fiscal policy also needs reform, to make it more growth-friendly, and to improve government structures. Once it has become clear that we mean business, we will reach out to our partners to renegotiate the post-2020 fiscal targets, using the vast majority of that to lower taxes further.

4. The third pillar is the banks. We will work closely with, not fight, the central bank. We will introduce our plan and implement it swiftly, taking advantage of international appetite for Greek assets. We will improve legislation with respect to bankruptcy and insolvency. Lower taxes and faster growth will increase the value of bank collateral. We will be fully executing the public investment budget, pay back state arrears and strive for inclusion in ECB’s reinvestment program.

We have already planned the timeline of our first legislative year. Change will come fast. We have no time to waste.

5. Good governance lies at the centre of everything. We will appoint the best from industry, business and the markets. We believe in meritocracy. We believe in the Rule of Law that has been so widely and crudely violated under Syriza. There is no growth without democracy; and no progressive society without freedom and fairness.

Greece was one of the first EU countries to plunge into the abyss of populism. Sunday’s election results tell us that voters no longer hear those sirens.

Ahead of us lies a long period of political stability. Join us as we embark on this journey.