“If there is additional space, it will be given to society. The cost of borrowing from the markets has increased for all European countries. And this means that we must be very careful in our fiscal policy,” said today the Minister of Finance, Christos Staikouras .
Speaking to ERT, Mr. Staikouras stressed that “we always act based on the fiscal space and that every measure should go to the citizen and that there should be special care for the most vulnerable households”.
He added that “we estimate that this potential fiscal space exists and has already been utilized, because when we had a budget of 70 million ENFIA reduction, we proceeded to a 350 million reduction of ENFIA. Automatically, that is, about 280-300 million additional budgets were utilized for the benefit of the citizen, especially of the lower and middle incomes, where 8 out of 10 citizens will pay less ENFIA from April onwards “.
On the other hand, Mr. Staikouras pointed out that “2021 closed much better than the estimates we had and this is reflected in the disposable income of the citizen”.
“We have virtually covered the entire loss of 2020, unemployment has fallen and this is reflected in the disposable income of a household. The disposable income of the citizen through tax cuts has increased significantly and ELSTAT and the European Commission are now converging on this,” he said. Minister.
He added that “in 2021 and before the intense problem of accuracy arose, the state helped either by reducing contributions or with support packages to strengthen the disposable income of the Citizen, which today is significantly gnawed and the family budget is significantly burdened” and continued:
“We are therefore coming and covering part but not all of the increase in energy costs and there will soon be additional announcements for the month of February. So far we have given about 1.75 billion euros (Italy had given 3 billion) and will add some subsidy for the month of February.
Secondly, we continue to reduce taxes even more. ENFIA, the reduction in fertilizers to 6%, the coverage of 7% to farmers is 400 million euros, which will not be missing from the wallets of citizens because we are essentially reducing these taxes.
Thirdly, we are doubling the minimum wage, the first one was made, which together with the reduction of insurance contributions is 4% from 1/1/2022 and another one will follow in May. We also undertake additional initiatives: extensions, reductions of citizens’ obligations, such as the Refundable Advance Payment. In other words, we have a comprehensive set of measures to relieve households of the current situation as much as possible. ”
Of course, as Mr. Staikouras said, “they will not cover all the losses, but we always act based on the fiscal space, that every measure should go to the citizen and that there should be special care for the most vulnerable households”.
Referring to the agricultural mobilizations, Mr. Staikouras stressed that the margins are limited after the announcements of additional measures by the Ministry of Rural Development and pointed out that: “We operate and make our decisions with criteria: the needs and capabilities of the fiscal space, “Money should go to the citizen and not be lost in the supply chain and the middle class and the lower income classes should be strengthened. Any further tax cuts can not be made at the moment,” he said. if needed”.
Source: Capital
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