Support measures in two phases: Temporary and permanent

By Dimitris Gatsiou

The government is pleased to welcome the figures announced for the budget for the period January-July. At a critical juncture of global economic turmoil, courtesy of Russia’s invasion of Ukraine, the data, as it came to light, shows a 20% excess in both net and tax revenues, which translates into an excess of five billions of euros.

And this new scenario on the economic front, almost four weeks before the Prime Minister’s inauguration at the International Exhibition of Thessaloniki, opens another realistic “window” for additional interventions to relieve households and businesses in the face of the energy crisis, at the same time as a leading position in the governmental strategy occupies the… puzzle of measures of a permanent nature, which will have as a dominant demand the increase of the disposable income of the citizens.

With the internal meetings to prepare the presence of Mr. Mitsotakis at the International Exhibition…picking up pace within the next twenty-four hours, what government officials point out is that, after all the data is “measured correctly” (the main issue remains maintaining the balance between the shielding moves and fiscal stability) the Prime Minister will clearly announce the support measures that Greek society can expect.

“We have proven that by always keeping reserves and without jeopardizing the fiscal stability of the country, we stand by the side of the citizens, to face these unprecedented crises, which have very unpleasant consequences in their economic life”, is the central message broadcast .Shield interventions in the high cost of energy are central to the discussions, the additional fiscal space expected to be created in the summer will be used for the benefit of society from September onwards and, now, what remains to be seen until the political – the co-capital’s financial milestone is the mix of announcements that Kyriakos Mitsotakis will present in his speech at the Vellideo Conference Center.

“The new mechanism for electricity is already being implemented, through which the readjustment clause is essentially deactivated, the excess revenues of the companies are frozen and transferred to the Energy Transition Fund, from which they are allocated for the support of consumers. At the same time, the support of the citizens for the fuel. In this context, the application of “Fuel pass 2″, which concerns the gasoline subsidy for the months of July, August and September, was opened in the previous days. The government will continue to support households and businesses to relieve the whole of society from the energy appreciations. The aid measures are constantly expanding and expanding as long as the global crisis exists, always in accordance with the country’s fiscal capabilities”, said (Parapolitically) the Deputy Minister of Research and Innovation, Christos Dimas.

The expected interventions

Therefore, based on the data so far, the interventions that are expected to be announced by the Prime Minister on the evening of September 10 at the International Exhibition of Thessaloniki will move in two directions. The first will include measures to be implemented by the end of the current year, such as, for example:

-Additional boosts on the power accuracy front.

-A new precision check, which will attempt to put a stop to a galloping inflation.

-Another piece in the fuel subsidy puzzle.

-Heating allowance, with expanded features, in order to further open, in view of a particularly difficult winter, the… fan of the beneficiaries.

The second direction will be related to the measures of a permanent nature, as they are included in the government strategy for the continuous reduction of the tax and insurance burden. In this context, high on the agenda are:

– The complete abolition of the solidarity levy. This measure has already been announced by Mr. Mitsotakis and is expected to be implemented from the beginning of 2023. The beneficiaries will be approximately 500,000 civil servants, civil servants and pensioners with annual taxable income from wages or pensions of more than 12,000 euros.

– The increase in pensions.

-The permanent reduction of insurance contributions.

-The third increase in the minimum wage in a year to the level of 751 euros from the beginning of 2023.

-The important thing…cutting or abolishing the pretense fee, depending on the revenue trend.