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Mitsotakis again promises to cut taxes if elected; says SYRIZA govt implementing 4th memorandum

Main opposition New Democracy (ND) party leader Kyriakos Mitsotakis remained “on message” over the weekend, saying that if elected he and his center-right party will lower taxes in the recession-battered country.

He also charged that the current leftist-rightist coalition government is essentially implementing a “new memorandum”.

The current bailout, the third consecutive Greek rescue program by institutional creditors since 2010, will end on August 20, a development that all sides involved desperately want and have advertized – the poll-trailing Tsipras government as part of its communications strategy boasting of an end of the bailout era, and creditors taking credit for shoring up a shaky Eurozone member’s finances and subsequently revitalizing growth prospects.

While Cyprus, Ireland, Portugal and Spain were extended one bailout, and accompanying strict conditions and oversight, Greece is in its third memorandum program; the third signed and delivered by the hard left Tsipras government.  

“We have been proven absolutely right when we referred to a fourth memorandum,” he said, in an interview broadcast by the Athens-based broadcaster Skai.

Asked about details, he promised a cut in the corporate tax to 25 percent, in the initial phase, and to 20 percent over a two-year period. Additionally, he promised to reduce an unpopular property tax, known as ENFIA, by 30 percent. The unprecedented property tax, by Greek standards, was instituted by a previous ND-led coalition government under Antonis Samaras. Leftist Syriza and much of the populist opposition at the time promised to abolish it if elected. However, the tax remained intact and was even expanded after the Tsipras government agreed to the third memorandum in July 2015.

“If we have any excess (fiscal) surpluses, then we’ll also discuss a cut in contributions,” he said, touching on high social security contributions imposed on wage-earners and their employers.

Other major points in his interview:

– A promise to attempt to “persuade” creditors to lower annual fiscal targets, namely, primary budget surplus goals as a percentage of GDP.

– A pledge to boost law enforcement, especially in what he called “downgraded areas”.

– Criticism over what he said was ruling SYRIZA’s attempt to “undermine democracy” and the concept of separation of powers.

– Mitsotakis said his party wants a comprehensive solution for the fYRoM “name issue”, with a constitutional revision in the neighboring country and a complete elimination of whatever irredentist objectives. Asked about the possibility of the term “Macedonia” being avoided in any compromise name solution, he said it would be “desirable, but probably not possible”.

The former minister, considered as the most market-friendly and reform-minded of Greece’s major political leaders, said he believes ND will form a one-party government afte the next election and a first-past-the-poll showing.

“Even with such a scenario (an election result allowing the formation of a one-party government), we will attempt to have the greatest possible convergence of reformist (political) powers … SYRIZA, however, is not among these forces, and therefore, we will not be able to create some grand coalition (government),” he said.

Finally, he again promised to work for the right of Greek citizens, who are eligible to vote in elections in the country, to cast their ballots from abroad.