Hatzidakis at the 2nd Cantina Academy: we are developing a national water plan, we are 19th in the world in the risk of water scarcity

The importance of establishing and executing a national water management plan was emphasized by Vice Prime Minister Kostis Hatzidakis during his speech at the 2nd Cantina Academy. He pointed out that Greece ranks 19th globally in vulnerability to water scarcity.

According to him, 80% of the nation’s water resources are allocated for irrigation, making it essential to undertake integrated measures, including the construction of dams and optimizing distribution networks. He highlighted that this project is currently in development and will be a strategic focus, particularly for primary production.

Hatzidakis opened his remarks by stating that, despite the persistent issues within the Greek production model, domestic food production meets roughly 80% to 90% of the needs of households, businesses, and the tourism sector. When non-edible crops like cotton are included, the agrifood sector has maintained a positive trade balance for the past 4-5 years. He reported that since 2019, manufacturing activity in this sector has surged by 73%, positioning agri-food enterprises, alongside the pharmaceutical industry, as emerging strengths of the Greek economy.

Nevertheless, he acknowledged ongoing challenges, such as the small average size of farms—among the lowest in the EU—which hampers productivity. He underscored that the government is working to tackle these issues through a strategy built on four pillars: enhancing sector growth, environmental protection, decreasing dependence on imports, and fostering youth involvement in the agrifood sector.

Citing the sector’s structural weaknesses, he highlighted the demographic aging of the rural workforce as a crucial concern, estimating that 200,000 additional workers will be needed in the coming years. He also noted a decline in the cooperative sector’s dynamic and scale compared to the past, calling for coordinated institutional and financial support.

The Deputy Prime Minister discussed various interventions, including tax incentives for farmers, a new framework for PDO (Protected Designation of Origin) products, and tools to support investment projects through European funding. He emphasized, however, that “much remains to be done swiftly,” stating that Greece has more compelling reasons than many other EU countries to invest in its agrifood sector.

On the topic of managing OPEKEPE, Hatzidakis candidly noted that “it’s not a glowing track record,” but reminded that the government rescinded inappropriate subsidies and facilitated the agency’s integration into AADE. He remarked that similar fiscal adjustments are seen across various EU member states, including Italy, indicating a political commitment to finding solutions despite past shortcomings.

Regarding the labor shortage in agriculture, he mentioned that the government is exploring solutions through legal immigration. However, he admitted the process is overly complicated, involving 39 stages and various stakeholders, which need reform. Additionally, he assured that Greece will not become a “sealed vineyard,” as there will be increased measures to control illegal immigration, while efforts will be made to educate local farmers.

Hatzidakis focused on education, citing the American Agricultural School in Thessaloniki as an example to illustrate the urgency of strengthening such initiatives. He asserted that agriculture should be viewed as a form of entrepreneurship, necessitating upgrades through knowledge, specialization, and market linkage.

He concluded by emphasizing the need for larger and more productive farming plots, rejuvenating the farmer demographic, and enhancing cooperative structures that employ modern, agile practices. All of these factors, he stated, are interconnected with the essential issue of water, which the government recognizes as a top priority for the future of Greek agriculture.