The positive image of the Greek economy is clouded by the high inflation caused by the jump in energy costs, said the Minister of Finance, Christos Staikouras, speaking to SKAI.
The positive image is shaped, as the minister said, by tourism revenues which, if they continue at the same pace, may exceed those of 2019, by the very high number of new investments, the high number of hires, by the reduction in unemployment and by the increased tax revenue.
In addition, as he said, household deposits continued to increase in the month of July.
He added that the downside is very high inflation that eats away at disposable income.
As Mr. Staikouras said, we currently have the fiscal space that was created from the first quarter and was given for energy subsidies.
The fiscal space created in the last two months, he stressed, will be used to support citizens in the last quarter of the year and the beginning of 2023.
For the overall picture of revenues, he reiterated that we must wait for the first week of September when the GDP of the last quarter will be announced.
Then we will have a picture of tourism and tax revenues, so we will know the fiscal margins, to help society at the end of the year.
Regarding natural gas, he said that it is a huge problem that requires a European solution, while he advised citizens to pay attention to consumption.
“If prices remain high, more subsidy will be needed, so additional resources will be needed for support that will be missing from elsewhere,” he said, reiterating that the government will be close to society as long as needed.
He estimated, however, that in the coming months the need for subsidies will be smaller than in August and September.
“We will cover a significant percentage of the increases in electricity and we will seek to have the same percentage of the increases covered,” he emphasized.
He left open the possibility of new fuel support, stressing however that the first priority is natural gas.
Regarding the heating allowance, he said that the government’s will is to give the same as last year, however, this is also related to natural gas. “If the price of natural gas increases further, the state budget will have to put in a larger amount,” he said.
He also said that for 2023 the prime minister’s will is to abolish the solidarity contribution for the public and pensioners (an intervention of 450 million).
He also said that a permanent increase in pensions is coming, without however specifying the amount.
Regarding the minimum wage, he said that the institutional procedure will be followed in the first half of 2023 to see the scope for a new increase, without affecting the business.
Regarding the existing tax breaks, he stated that they are all maintained and are permanent and explained: “We want fiscal stability with permanent tax reductions and non-permanent citizen assistance to deal with expenses.”
Source: Capital
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