Chr. Staikouras: New fuel subsidy if the fiscal space is found

On the show MEGA Weekend, the Minister of Finance, Christos Staikouras, spoke about the issues of our pocket, and the actions that the government has planned in order to alleviate households and businesses that are bending under the weight of increases and price increases.

Asked if there would be a new fuel subsidy, Mr Staikouras said: “It is too early to discuss this. I will not respond to any additional measures other than what we have announced. They have not yet been implemented. subsidize households and businesses for electricity.Until this is implemented, until fiscal space is created again, i can add nothing.As has been proven for the last three years, we first plan, find the resources, and then announce the measures. “We will see what the situation will be in the next period, I estimate that a fiscal space will be created, and we will act accordingly. There is a problem, how we will deal with the problem is a discussion we will have with the prime minister.”

“It would be extremely easy for me to come and suggest tax cuts and allowance increases. I have a responsibility. The latest report from the European Commission says that Greece has so far provided twice as many resources as the European average to “Those who are willing to give more are proposing to increase our deficit by mortgaging the future of the country,” he added.

Regarding whether the government is considering any permanent support measures, or whether it will continue the subsidy policy, the Minister of Finance noted that “A combination will be made. Each time we evaluate the current situation, and depending on the fiscal space we will add or even enrich “The existing measures, and there will be permanent mechanisms. An example of this is ENFIA. This week the citizens will pay the first installment. This year the citizens will pay 380 million less than ENFIA. This is a permanent measure” .

Regarding the excise tax, and if there are thoughts of reducing it, he explained that “The letter we received from the European Commission to all the finance ministers in Europe, says that it is preferable not to reduce taxes on fuel because “This has no social justice. Especially as long as the crisis lasts. It is best to get most of the tax revenue from the increased VAT to help targeted households and businesses.”

“We have not ruled out the reduction of VAT on food. The next phase will be the phase when we will create a fiscal space again and we will distribute it fairly to the Greek society”, continued Mr. Staikouras.

Scenarios for early elections

Responding to whether early elections are coming, he clarified that “The prime minister has given the right answer for the elections in 2023. Anyone else who says something different is outside the framework that has been said. Economic policy has been built on 4-year terms.”

What will the abolition of the revaluation clause mean for the accounts?
Regarding the “hot” issue of the days, the electricity bills and the adjustment clause, Mr. Staikouras said: “Before July 1 and the abolition of the adjustment clause there are two previous stages. The first concerns the present. We say that those of you who paid for your first home, 60% of what you paid as a cost increase we come and cover it.In June the citizens will see in their bank accounts 280 million euros.For May and June we subsidize more bravely.We extend the subsidy over This means that we will cover the households with a percentage of 86% of the increase that they will have in May and June. increase “.

“We will cover 70-80% of the increase in electricity in the second half of 2022”
“From July onwards, we are planning and launching a more permanent mechanism of double intervention in the wholesale and retail price. “to automatically return to the Ministry of Finance so that we can subsidize even more bravely the retail price in order to stabilize the growth, covering 70-80% or more of the increase in electricity that will exist in the second half of 2022”, he added.

Mr. Staikouras, responding to whether there will be a new check of accuracy, noted that “We will discuss everything at the right time.”

Refundable deposit: When will it be paid and how

Speaking about when the repayable advance will be paid, Mr. Staikouras said that “We have announced extensions, it will be until the end of July and for anyone who wants to pay all the repayable advances, or part of them with a 15% discount. We lent to companies 8 , 3 billion euros, we borrowed as a state 8.3 billion euros with low borrowing costs, and we expect to get back 3 billion euros. The rest is a “haircut”.

“We are launching the extension of the reduced VAT that expired in June 2022 for transport, restaurants, cinemas and gyms until the end of the year”, the Minister of Finance noted in closing.