The Governor of the Bank of Greece, Yannis Stournaras, has proposed a comprehensive reform of the tax system, focusing on the middle class, alongside an evaluation of the social benefits distribution system.
In a recent interview with public broadcaster ERT, he indicated that the next crucial decision regarding interest rates will be made in September, and he did not dismiss the idea of pursuing a third term at the Bank of Greece.
Stournaras emphasized the importance of addressing the challenges faced by borrowers with loans in Swiss francs, while ensuring that the banks’ capital adequacy remains intact.
Discussing taxation, he asserted that it is time for a complete review of the system, noting that advancements in technology and other changes necessitate this overhaul. “Fortunately, we currently have a strong fiscal position. It may be time to scientifically assess how we can improve the efficiency of the tax system and enhance tax fairness through various reforms,” he remarked.
He also highlighted the need for potential reforms in tax rates, exemptions, and social benefits. “We require a white paper, as they term it in the UK,” he suggested, to pinpoint which changes could foster economic growth while promoting social equity. He clarified that any new system should favor wage earners, stating, “Currently, wage earners in Greece are the ones facing unfair treatment. Thus, any adjustments should support them and strengthen labor.”
