G. Chatzitheodosiou: The measures will give an ‘injection’ of liquidity to the real economy but until then

“The measures announced will give a breath and an” injection “of liquidity to the real economy, but until then …” said the president of the Athens Chamber of Commerce, Giannis Chatzitheodosiou.

As the president stated:

“From the announcements of the government and the specifics of the measures taken by the Ministers, we understand that the government staff has realized the impasse in which households and businesses find themselves due to the sharp wave of price increases.

The new support package was imperative as a very large number of consumers – the vast majority I would say – do not have the ability to repay electricity, heating bills, buy some basic goods and at the same time support the market. Something that has a very serious impact on the operation of businesses and especially small and medium enterprises.

Indeed, the announced measures will give a breath and an “injection” of liquidity to the real economy or, as government officials say, will alleviate some of those affected by the precision. Until then, though. The increase of the electricity subsidy, the extraordinary financial aid to the most vulnerable or the least cheap fuel – about 40 euros per quarter will be saved by the owner of a car – can in no way be considered measures that will effectively support society and give impetus to overcome the new crisis. For example, increasing installments to repay Refundable Advances will temporarily act as a “safety cushion”, shifting immediate claims to later times, but does not solve the problem companies face today. Let me remind you that as a chamber community we had asked that the obligation to return the Refundable Advances not apply, as a measure of practical support to businesses affected by the consequences of the pandemic.

We understand the limited financial possibilities of the State for decisive interventions, especially in energy. Of course, the government must also admit that today it is facing a problem that it knew would arise. We disagree with its tactic of combining huge increases in energy with the war in Ukraine. The wave of price increases had appeared on the market since the autumn. The war did exacerbate the problem, but it did not.

We therefore consider it necessary to have a single European emergency plan, and the government must put as much pressure as possible on our partners to implement a policy across the EU that gives hope to households and businesses. Other European countries, especially in the south of Europe, are facing similar problems with Greece and it is time to prove in practice the famous European solidarity. In the next period we will see an even greater increase in inflation and further price increases in basic goods.

What is certain is that mitigation measures and piecemeal actions do not solve the problem. On the contrary, the risk of a pan-European food and humanitarian crisis is growing and visible. “And the priority for everyone must be to eliminate this risk, enabling economies like ours to move forward and not backward.”