The new plans of YPOIK for the support measures

By Tasos Dasopoulos

Electricity and gas subsidies will be at least until the end of the third quarter the main measure of support against accuracy, along with, of course, permanent support measures for households and businesses, such as tax cuts and insurance contributions.

The measure of the extraordinary reduction of the VAT on food proved, with the different scenarios made by the Ministry of Finance, that it has a huge cost and a dubious result. The head of the financial office of the Prime Minister Mr. Alexis Patelis, in yesterday interview with Capital.grCommenting on such a possibility, he said: “A reduction in VAT would only have a temporary benefit and most likely not be carried over to prices, but kept to business. And of course it has nothing to do with rising prices, in the sense that inflation it is a recurring phenomenon “.

On the same cruising line and The Minister of Finance, Mr. Christos Staikouras, stressed yesterday that the measure of an extraordinary reduction of VAT on food has a large budgetary cost and it is doubtful whether we will see it pass on to prices in order to actually benefit the consumer.

Nor, however, do the institutions appear to be positive in implementing such a measure. During the hearing in the European Parliament, the President of the ECB, Mr. Christine Lagarde, was asked by the SYRIZA MEP, Mr. Dimitris Papadimoulis, whether it is possible to make a VAT reduction to alleviate the pressure from the increases in fuel and food prices. vulnerable. Responding, the central banker of the Euro, after reminding that the EU has announced specific measures to curb revaluations, clarified that it is not aware of the measures that the Greek government wants to implement. However, he did not avoid answering the Greek MEP. “Know that a horizontal VAT cut does not seem to be the targeted tool recommended to really lighten the burden on those who are most vulnerable,” he said.

Increasing the subsidy to companies

In an alternative way, the government is thinking of mitigating as much as possible the increase in production costs from high energy prices for businesses. In fact, sources from the Ministry of Finance stressed yesterday that the opinion of the European Competition Commission is still expected to increase the subsidy of energy price increases to companies, from 50% to 75%, using budget resources.

The rationale is that if most of the price increases of energy products are subsidized, prices will be kept at wholesale and will not go to retail. Other thoughts about bonuses for the financially vulnerable during the Easter holidays, although discussed, have been withdrawn for the time being to reopen when and when it is judged that price increases have created a serious problem in family budgets.

But before any move is made, YPOIK is waiting on March 4 for the announcement of ELSTAT data for the 4th quarter and the whole of 2021, so that it knows exactly what the margins can be. In other words, to finalize the additional budget space that is available, if the 335 million euros they have used to reduce ENFIA are deducted.