At the heart of the European political stage in Brussels, Prime Minister Kyriakos Mitsotakis delivered a clear message: a strong economy is fundamentally linked to the strengthening of collective labor agreements. As Europe seeks a new productive model, the Greek government is attempting to heal the wounds of the previous decade by bringing social dialogue back to the forefront as a tool for the fair distribution of wealth.
A Shift Towards the European Social Model
During his meetings with European leaders and representatives of social partners, Mr. Mitsotakis emphasized that Greece can no longer compete based on low labor costs. Instead, the country must invest in quality, expertise, and, most importantly, wages that reflect productivity gains. The commitment to increase collective bargaining coverage to 70%, as stipulated by the relevant European directive, is now a central pillar of the government's strategy.
This statement is not merely a political promise but a recognition of the need for institutional protection of labor. After years of flexibilization and the weakening of unions during the memorandum period, a return to collective bargaining is considered essential for ensuring social peace and reducing inequalities exacerbated by inflation.
Economic Stability and Purchasing Power
The Prime Minister inextricably linked collective agreements with the sustainability of growth. As he explained, better wages are not just a social demand but an economic necessity to stimulate domestic demand. In this context, the government is promoting a model where increases in the minimum wage act as a catalyst for all wage brackets through sectoral agreements.
- Strengthening the bargaining power of workers in critical sectors such as tourism and energy.
- Linking wage increases with the digital and green transition of businesses.
- Creating a stable environment for businesses through long-term agreements.
However, the challenge remains significant for Small and Medium Enterprises (SMEs), which form the backbone of the Greek economy. Their ability to absorb increased labor costs without losing competitiveness is the bet the government aims to win through tax relief and incentives for mergers.
The Political Stakes and the Road Ahead
This move by Kyriakos Mitsotakis in Brussels is also interpreted as an attempt to redefine the center-right identity, incorporating social protection elements traditionally belonging to the left-wing agenda. In an environment where populism feeds on economic insecurity, the promotion of collective agreements acts as a bulwark.
"There is no strong economy without satisfied workers. Growth that is not shared fairly is not sustainable growth," the Prime Minister characteristically noted.
In conclusion, the Greek side appears to be fully aligned with the European Commission's directives for a "strong social pillar." The implementation of these commitments will be judged in practice, in the negotiating rooms between employers and employees, where economic growth theory meets the daily life of the Greek citizen.
