The Omicron variant frightens the Ministry of Finance

Of Tasos Dasopoulos

The increase of uncertainty in both the health authorities and the financial staff, has meant the appearance of the new coronavirus mutation which within a few days, appeared in many European countries.

The little information about this new “type” of coronavirus, in terms of its potency, its transmissibility and – mainly – its resistance to vaccines, causes great concern to the finance ministers, a few days before the Christmas holidays. .

With the government assuring in all tones that a new lock down of the economy is ruled out, no one believes that the end of 2021 will be similar to that of 2020, given that the percentage of vaccinations has now approached 70%. However, with the announcement of restrictions on access by the unvaccinated, sectors such as catering and retail requested new support measures which were not initially met.

But if the current pressure on the health system continues or intensifies in the near future and the network of restrictions expands, then the Ministry of Finance will have to recalculate. This is given that a new front has been opened, that of the rise in fuel prices for which 620 million euros have been allocated so far, with a commitment to continue to cover part of the increases for as long as they continue.

Ready-made “relief” measures

With the arrangement for the debts of the pandemic from 36 up to 72 installments and the repayable advances which were cut up to 75%, no new subsidy measures are currently being considered. Depending on the course of the market during the festive period and if there is a significant reduction in turnover, some “relief” measures will be considered.

For example, the deadline for the start of payment of the installments for the debts of the pandemic or the debt from the repayable advances could be extended, for a period of 1, 2 or 3 months. This was also requested by members of professional branches from the Prime Minister, during the meeting they had at the beginning of the month, taking the promise that the request will be considered. This is expected to happen in December, depending of course on the course of the pandemic and the consequences it will have on market turnover.

One measure that will definitely be implemented after the extension of the emergency state aid scheme by the EU until the end of June, is the extension of the measure to cover fixed costs in the first months of 2022.

More specifically, a number of companies (mainly tourism) requested from October, the credit they secured to cover tax and insurance obligations, to be extended after the end of the year.

This is because the obligations they had for 2021, were less than the amount due to them and therefore they would lose their right unjustly. With the extension given by the EU, the measure can be extended in 2022 at no additional cost.

By the same token, guarantee programs that have an outstanding amount or business aid from the regions can be extended.

Coordination with the EU

Before decisions can be made, Greece must coordinate with the EU in the light of new developments. This will be done preliminarily tomorrow Tuesday at the meeting of the Euro working group where the data is not expected to have much more information than today for the new mutation and definitely in next week’s Eurogroup.

There, the finance ministers will discuss the first data and the course from here on will be decided. At the same meeting, the report on the 12th evaluation of Greece will be discussed and the installment of 767 million euros will be approved.