The widespread implementation of point-of-sale (POS) systems has played a key role in reducing the size of the shadow economy, once estimated at 30%, now brought down to less than half, Greek Finance Minister Kyriakos Pierrakakis announced during the opening of the 5th OT Forum.
He explained that while previously the underground economy accounted for about 30% of the country’s GDP, it has now dropped significantly, a development that is expected to be confirmed in an upcoming study by the International Monetary Fund.
The minister also addressed the application of the escape clause for fiscal policy, noting that while other European countries will calculate it using 2021 as a base year, for Greece, the reference point will be 2024. This is due to the country’s higher defense spending compared to its EU counterparts. This adjustment is projected to save Greece approximately €600 million.
Pierrakakis highlighted the government’s ongoing battle against tax evasion, a campaign that has garnered international recognition. He cited recent meetings in the United States during the IMF and World Bank meetings, where officials acknowledged Greece’s progress.
The Finance Minister also previewed further steps in the fight against tax evasion, indicating that these developments will be reflected in forthcoming IMF reports. He emphasized that a portion of Greece’s budget surplus is directly linked to the success in curbing tax evasion.
He outlined three major initiatives designed to enhance transparency and enforcement: a digital customer registry to automate the recording of business transactions and supplier-client relationships; a real-time digital delivery note system to monitor commercial goods transportation; and a Property Ownership and Management Registry aimed at identifying undeclared rental income and hidden assets.
Pierrakakis stressed the transformative power of digitization, noting that it enables the state to collect revenues from sources previously beyond its reach. He assured that the parts of the plan not yet in effect will be implemented in the near future, promising that the reforms will gradually expand to cover the full scope of the economy.
