Deputy Prime Minister of Greece Kostis Hatzidakis provides detailed answers on the agricultural issue in his interview with the Athens Macedonian News Agency addressing also the arguments raised by the opposition. Two points stand out from what he says First that farmers will receive more subsidies this year specifically last year OPECPE made payments of 2.7 billion euro and this year they are expected to reach 3.3 billion euro. Second that Greece is not losing any money from Brussels. Given this farmers who make honest declarations will receive higher subsidies he notes.
He also presents a series of figures regarding the economic situation of the country and society speaks about the state budget and comments on the government actions to raise incomes and tackle price pressures.
Infographic showing agricultural subsidy payment amounts
Interview with Kostis Hatzidakis
Q The advance payment of the Basic Support for twenty twenty five has begun. Do you believe this move is enough for farmers to return to their fields
A These days and until the end of December we turn the page and move to a new normal in subsidy payments for farmers. I stress two things First compared to twenty twenty four farmers will receive more subsidies this year. Second after difficult negotiations with the European Commission we concluded on a hybrid system for this year and a final system for next year under which Greece does not lose money from Brussels. The distribution among farmers becomes more fair. Of course I will not tell farmers what to do. They will decide for themselves.
Q Still the advance of the Basic Support is smaller than last year
A The data indeed show that this year the advance is at seventy five percent compared to last year three hundred sixty three million against four hundred seventy six million euro. For forty four thousand farmers additional checks will follow. A further two thousand taxpayers have been excluded including those identified by the Economic Police. In any case the total amount after final clearance will be the same as last year since redistribution will favor farmers who make honest declarations. They will ultimately receive higher subsidies.
Q PASOK nevertheless blames the government for the smaller advance. What is your response
A It is known though PASOK ignores it that with the new CAP Basic Support is being gradually reduced across Europe while support through linked production eco schemes and other tools is increasing. Neither the country nor farmers lose. Total EU funds remain the same. PASOK isolates one payment instead of seeing the full picture of the three point seven billion euro that farmers will receive in twenty twenty five. It also avoids taking a stand on whether it agrees with the major reform of the subsidy system that benefits honest farmers.
Q Problems remain since many plots were excluded and some livestock farmers received less support despite meeting criteria. How do you address these issues
A The issue with certain rangelands arose due to mismatches with satellite images. Farmers may submit older satellite photos to verify their eligibility. Farmers also may file appeals where problems were found with land registry numbers especially in central Macedonia. For livestock farmers there is indeed an issue in five regional units due to the formula for pastures. Therefore OPECPE will proceed with an additional payment based on objective data such as sales invoices for milk and meat and feed purchase invoices selecting the most favorable criterion for farmers.
Q What are the next steps for outstanding and current payments
A Farmers will receive three point seven billion euro in twenty twenty five. Already one point nine billion have been paid. These days we proceed with five hundred thirty eight million euro in payments not only for the advance of Basic Support but also under the Rural Development Program and for lumpy skin disease. By year end an additional one point two billion will be paid including final Basic Support and Measure twenty three. Last year payments reached two point seven billion and this year they are expected to reach three point three billion.
Mid article image of Kostis Hatzidakis
Q The opposition claims you could have paid earlier but did not
A This is puzzling. No government would delay compensation intentionally. Beyond farmer pressure we had pressure from the European Commission which clearly warned about suspension of payments if we failed to comply with EU rules. We had to agree on an Action Plan for reforming the payment and control system and also the transitional hybrid system for twenty twenty five. Negotiations covered land registration animal calculation rules necessary checks and more. We submitted the plan on four November. It was approved on nineteen November. We worked day and night to adjust the system perform cross checks and deliver payments on time.
Q Do the differences with the Commission belong to the past or do issues remain
A We have worked intensively for compliance and I believe we have convinced the Commission of our commitment to a complete and fair reform. Approval of the Action Plan confirms this. Implementation will continue. In twenty twenty six OPECPE will transition into the AADE and the new system will operate without further complications.
Q The opposition refers to a scandal. Do you accept this claim
A We never denied responsibility. The prime minister has repeatedly said we did not manage well. Other parties claim everything was perfect when they governed. Citizens judge all of us.
Q The Budget is now under debate. Are there additional measures beyond those announced at the Thessaloniki Fair
A The twenty twenty six budget includes a significant package of tax reductions announced by the prime minister at the fair. Over four million citizens benefit. New measures for livestock farmers were announced on Wednesday. The prime minister will also announce measures to address housing difficulties. Our aim is for economic progress to return to citizens while respecting EU fiscal rules.
Q How would you describe the economic situation of the country
A The economy is moving steadily forward. Growth is more than double the EU average. Between twenty nineteen and twenty twenty five investments rose ninety six percent in constant prices. Exports of goods more than doubled compared to the pre crisis period. Unemployment fell from seventeen point nine percent to eight point two percent in September twenty twenty five with over half a million new jobs created. Eighty three taxes and fees have been reduced or abolished. Bad loans decreased from ninety two billion euro in twenty nineteen to seventy four billion in the second quarter of twenty twenty five. Deposits rose from one hundred forty three billion to two hundred four billion with most of the increase coming from households. In twenty twenty three more Greeks returned to the country than left.
Infographic illustrating economic data
Q Why then does price pressure remain the top concern for citizens
A Cumulative price increases put pressure on households across the EU. The government has not remained passive. The reductions in taxes and increases in wages and pensions serve as tools against price pressures. This week rent support and the two hundred fifty euro support for low pensioners were paid. Early next year citizens will see improvements in their income. The Ministry of Development has also advanced measures such as the household basket significant fines and the creation of an independent market oversight authority and prepares producer markets to reduce the gap from farm to shelf.
