The new plan of the Government against inflation

By Tasos Dasopoulos

Continuous adjustment of subsidies for price increases in energy products, as well as controls, so that “imported” inflation does not lead to scandalous profits during the holidays, is the diptych in which the Ministry of Finance will move in cooperation with the relevant ministries.

The special feature of this year’s festivities is the shortages that are already recorded in other European countries, but also in Greece, in specific imported items, such as electrical and electronic devices and toys, as well as clothing items of multinational companies. It is obvious that the problem was also caused by the increase in the prices of fuel, raw materials, the lack of semiconductors and the increased transportation costs. The concern of the financial staff, in view of the upcoming holidays, is that such an environment creates a field of action for speculators, who will try to take advantage.

Competent sources of YPOIK stressed that the rise in inflation to 4% or even higher for November and December, does not particularly concern the Ministry of Finance. This, given that international organizations with the EU first. forecast inflation for the whole year, just over 0%, while despite the rise since the summer, the Greece’s inflation is the third lowest within the EU However, the price increases and the impact they have on revenues, in the short and medium term, are of serious concern to the Ministry of Finance, which will continue its interventions at two levels.

There will be a “whip and carrot” tactic with the purchase. In other words, there will be continuous inspections in cooperation with the Ministry of Development, while where excessive or unfair profit is detected, there will be heavy fines. At the same time, at a high political level, there will be closer contact with companies to participate in the whole process of price restraint. A first move in this direction was the public appeal made a few days ago by the Deputy Minister of Finance, Theodoros Skylakakis, who asked companies to think before passing all the imported inflation on the prices of their products and services as, as he said, there is a great prospect of an increase once the season of revaluations is over. In addition to the appeals, there will be meetings in the coming days with specific sectors, so that the ministry has a continuous picture of the market, but also there is indirect pressure to keep prices.

Semi-annual grant plan

However, along with the special features that the price supervision will have, this year, especially, Christmas, the Ministry of Education and the Ministry of Energy will continue to subsidize the increased tariffs for gas, oil and electricity.

The Ministry of Finance is now drawing up a plan for subsidies against the increases in energy products until the middle of next year, when prices are expected to stabilize before they begin to de-escalate permanently. With this scenario, prices are expected to return to normal levels by the end of the summer. Under this scenario, the subsidies will be continued from the proceeds of the auctions for the emission rights from which € 600 million has already been allocated.

An unfavorable scenario that exists in the drawers of YPOIK is the one that wants the duration of high prices in energy products until the end of next year, but at the moment is not supported by any international organization.