The government has shown rapid reflexes and will continue to do the same if conditions so require, Finance Minister Christos Staikouras said, referring to possible measures to support households and businesses in the face of the pandemic and inflation.
Speaking to ERT, however, the minister stressed that every decision should be taken based on the needs of society and the economy. He characteristically noted that “Greece has a high primary deficit, does not have an investment rating, while it is still in a state of enhanced supervision”.
Referring to a possible discussion for a reduction of VAT on some goods, he stressed that the budgetary cost for such a thing is high and noted that “in a possible reduction of VAT only on bread, the cost amounts to 140 million per year.”
“We have to be serious,” he added, but did not rule out the possibility that the debate could resume if circumstances so require.
Regarding inflation, the Minister of Finance acknowledged that it is very intense and stressed that according to the ECB estimates, in 2022 it will move in the region of 3% – and below 2% it will fall in 2023.
Finally, he stressed that at present there is no decision to extend the deadline for the inclusion of the debts of the pandemic in regulation (the deadline expires on January 26), but also in the calculation of the transfer tax based on the old fair values, which expires on January 31.
Source From: Capital
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