In the final stretch Maximou for TIF – Energy crisis and the ‘key’ of the fiscal

By Dimitris Gatsiou

In the final stretch for the presence of the prime minister at the International Exhibition of Thessaloniki, on the two days of September 10 and 11, the Maximos Palace is now entering. The final package of measures to be announced by the prime minister, from the podium of the Vellidei Conference Center, with medium and long-term measures to support society and reduce tax and insurance burdens will be “locked” in the middle of next week, with Mr. Mitsotakis having on his agenda tomorrow’s meetings with the productive operators in the co-capital, which will determine, to a large extent, the mix of shielding interventions.

And he himself, during yesterday’s cabinet meeting, may have… lowered the bar of expectations regarding the amount of interventions, however the government staff is looking for the exhaustion of every margin in terms of shielding households and businesses, by maintaining the fiscal balance to is the key concept in this marathon of dykes in the energy crisis.

“The resources are not inexhaustible and we must not forget that, if the state today is able to support households and businesses with more than two billion a month for electricity bills, it also owes it to the prudent policy, which increase the public wealth, so that it may be returned to the citizens.Therefore, our measures will always be measured, and without temporary exigencies subverting national necessities.

I say this, because I hear or read – this always happens before the Thessaloniki International Fair – about a “tsunami” of impending benefits, which often create false expectations. In an environment of increased interest rates, it is good for public debate to be based on realism and true inflation is not struck with false inflationary promises. And if so far we succeed in effectively supporting society, to the best of our ability, it is precisely because we are exhausting the fiscal margins, but not abolishing them,” was his characteristic distaste Mr. Mitsotakis.

Be that as it may, however, the coming winter causes intense concern for the government, which sees prices on the energy front gallop and the needs of households and businesses for support multiply. As said, however, the point is that the measures that will come to the fore do not disturb the fiscal balance. “We will not give in to pressure beyond the maximum limits given to us by the General Accounting Office of the State and the Ministry of Finance”, noted Mr. Mitsotakis, addressing his ministers.

The measures and the 180 degree turn of Europe

Amidst this backdrop of multiple crises, which are the prelude to a difficult winter, the government is rushing to implement the next round of citizen support measures. According to the information so far, in the speech on September 10 at the Vellideo Conference Center, the Prime Minister will announce:

-New subsidies for electricity-natural gas-fuel.

-Relief measures against accuracy.

-Abolition of the solidarity levy for all citizens.

-Increase in pensions, after twelve years.

-A new increase in the minimum wage.

– “Cheap” housing program for young couples and young workers.

-Maintaining the reduced VAT in restaurants, transport, coffee, etc.

-Suspension of 24% VAT on construction for two years.

At the same time, the… ball of the solution at a pan-European level is in Brussels’ court. What is pointed out is that the government will continue to do everything it can to support society, however, if something drastic is not done at the European level, large countries are at risk of collapse.

In this context, Athens sees with satisfaction that the proposals it submitted for a cap on natural gas prices and decoupling the prices of natural gas and electricity are gaining ground. “I was one of the first to warn about the crisis we are facing now. Then, in fact, I had spoken, causing some reactions in Brussels, about Europe’s unwieldy “super-ocean” which is usually slow to change course. Now, after the statements of the president of the European Commission, but also the activation of the Czech presidency, I will say “better late than never”. I will insist, however, that every day that passes without a unified response to the energy crisis, will increase the problems for all Europeans”, said Mr. Mitsotakis, in the cabinet.