For decades, tax evasion has been Greece’s structural weakness — a systemic problem that significantly contributed to the sovereign debt crisis of the 2010s and undermined public trust in the state. Today, however, that long-standing vulnerability is being confronted with an unexpected ally: Artificial Intelligence.
In an interview with Germany’s Handelsblatt, Greece’s Minister of Economy and Finance Kyriakos Pierrakakis outlines how AI-driven data analysis, combined with deep digital reforms, is delivering tangible results in the fight against the shadow economy.
“The use of Artificial Intelligence to combat tax evasion goes hand in hand with the comprehensive digital transformation of the economy,” Pierrakakis stresses.
Digital Invoicing, Big Data and Algorithms: A New Tax Arsenal
At the heart of the strategy lies the creation of high-quality, large-scale financial data. Electronic invoicing, digital accounting books and real-time transaction reporting now feed a unified system that enables tax authorities to move beyond random audits and human intuition.
According to Pierrakakis:
“Reliable data allows authorities to use advanced analytics and AI tools to detect patterns, flag anomalies and prioritize cases where the risk of fraud or underreporting is highest.”
In practical terms, Greece’s tax enforcement is shifting from reactive inspections to predictive oversight, targeting evasion before it becomes entrenched.
From gov.gr to the Treasury: The Political Continuum
The Handelsblatt highlights that Pierrakakis’ role in this transformation is no coincidence. Educated in computer science at the Athens University of Economics and Business, political science at Harvard, and holding a master’s degree from MIT, he represents a new technocratic generation within Greek politics.
Appointed Minister of Digital Governance in 2019 by Prime Minister Kyriakos Mitsotakis, Pierrakakis launched gov.gr, a platform that now offers access to more than 2,500 digital public services. International observers increasingly view this platform as the infrastructure backbone of today’s fiscal reforms.
His transfer to the Ministry of Finance in March 2025 signaled a clear political intention:
- digital governance would now translate directly into fiscal discipline and revenue recovery.
Beyond Revenue: Restoring Tax Fairness
From a broader political perspective, the deployment of AI is not merely about boosting state revenues. It is also about rebalancing the social contract — easing pressure on compliant taxpayers while systematically targeting habitual evaders.
By enabling risk-based audits rather than blanket controls, the system reduces administrative arbitrariness and strengthens perceptions of tax fairness, a crucial factor in long-term compliance.
Once regarded as a European case study in fiscal failure, Greece is now positioning itself as a laboratory for digital tax enforcement. The growing international interest — including coverage by Handelsblatt — suggests that this transformation is no longer viewed as an experiment, but as a model under observation.
Whether Artificial Intelligence can permanently dismantle Greece’s shadow economy remains to be seen. What is clear, however, is that the rules of the game have fundamentally changed.
Source: pagenews.gr