The countdown to the completion of the drafting of the TIF package that will be announced by Prime Minister Kyriakos Mitsotakis has already begun, while much will be decided in the first week of September, when three important facts about the course of the Greek economy will be known.
The fiscal space that has emerged is estimated to possibly be limited in the event that the needs for subsidizing electricity tariffs continue to grow.
However, in the event that the good course of tourism and public revenues continues, but also the growth is at better than expected levels, then it is very likely that the perimeter of the measures that will finally be announced on September 10 will be opened.
In the financial staff, however, there is optimism that there will be fiscal margins for important announcements. It should be noted that the possible best picture of the course of the fiscal (public revenues, course of GDP in the second quarter of the year and tourism) will be known in the first week of September.
On the table are a series of proposals both for measures of a permanent nature, as well as for measures that support households and businesses against punctuality.
One of the measures that is gaining ground is the accuracy check. A targeted measure that will help vulnerable social groups, which are under greater pressure from accuracy and inflationary pressures.
Recently the Minister of Finance Christos Staikouras reiterated the government’s commitment that the support of society, households and businesses will continue for as long as necessary in order to deal with the consequences of precision and high energy prices.
With reference to the TIF package, he has emphasized that the final decisions will be made at the beginning of next month after considering the data available in the economy, noting that the matter has been discussed with the prime minister. He clarified, however, with emphasis that the more fiscal space is absorbed for energy price subsidies, the more resources are lacking for other support measures.
Among the permanent measures that will come into force on January 1, 2023, the abolition of the solidarity contribution for civil servants and pensioners is a given, based on the government’s specific commitment. The rest of the measures on the table are being considered, but they have not been “locked”.
The main scenarios considered are the following:
* Increase in the minimum wage: The prime minister is expected to give the direction for an increase in the minimum wage, without specifying it, since there are specific procedures, which he would not want to overdo under any circumstances. Information wants the minimum wage to be established at pre-memorandum levels, that is, at 751 euros, from 713 euros that it is today.
* Increase in pensions: From January 1, 2023, it is estimated that there will be increases in pensions which, according to Labor Minister Kostis Hatzidakis, will concern all pensioners.
* Solidarity levy: The draft of the new budget, which will be submitted to Parliament in the first week of October, will include, among other things, the abolition of the solidarity levy for civil servants and pensioners.
* Accuracy check: A new accuracy check is being considered for 2022, in order to support the low pensioners, the unemployed and those who belong to the category of vulnerable social groups.
* Reduction of the Pretense Fee: There are scenarios for a 50% reduction of the pretense fee at a cost of 200 million euros for the state coffers, but it is one of the measures that will be judged in paragraph five and depending on the course of public finances.
* Fuel Pass 3: In the event that fuel prices remain at high levels, there will be a new round of aid.
I am Derek Black, an author of World Stock Market. I have degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.