‘Window’ from Brussels for antidote measures to be precise

By Dimitris Gatsios

War in Ukraine. Day 3. With the backdrop of the escalation of Russian aggression hour by hour, Athens is coordinating its pace with partners and allies in the European Union and NATO. The Prime Minister, after the meeting of the Government Council of National Security, on Thursday morning, gave the “present” at the extraordinary Summit of the “27” leaders and yesterday informed the President of the Republic, Katerina Sakellaropoulou, about its results, participating, immediately then, in the extraordinary NATO Summit via teleconference.

The “Sympligades”

The government still has on its radar the dramatic developments on the Ukrainian front, with the … alarm at the Maximos Palace sounding the effects on the economy and the energy system of the country. The “explosion” of prices in natural gas and the fact that the price of crude broke, for the first time since 2014, the barrier of 100 dollars per barrel bring to the horizon a new wave of price increases, which will put in … Complications the household and business budget. The government staff is constantly examining support scenarios, with concerns about a possible tsunami of accuracy being pervasive and accompanied by concerns not only about the impact on the energy front, but also about any shocks in the tourist season, due to international liquidity. At the same time, it sends the message that the country’s energy adequacy has been ensured, while scenarios are constantly being examined that will concern the best possible treatment and absorption of price fluctuations. In this context:

Provision has been made for further supplies with LNG and natural gas.
– All the possibilities of the pipeline coming from Azerbaijan will be exhausted.
-The possibility will be exploited for the dual fuel factories to produce electricity with both natural gas and oil.

The time of the common answer

What government officials, as well as Kyriakos Mitsotakis himself, have been emphasizing for weeks, that is, that the shielding of citizens (mainly vulnerable groups in society) and businesses will continue for as long as the crisis lasts, always at the forefront and the last interventions. “Throughout the past, there have been support measures for energy, and obviously we have to adjust our policy, to adapt to developments, as they are shaped after the Russian invasion and possibly the worsening of the already aggravated situation,” he said.

The government is reportedly working on a new wave of support in the near future, with the aim of absorbing as much shock as possible from the Ukrainian crisis, with the Prime Minister saying at the same time that the time has come for a common European response to another major crisis. Athens also notes that the European family must act in a united and coordinated manner, in order not to be held hostage by Russia, with the logic of reaction, in order to deal with the consequences that the crisis will have for European consumers and businesses to be commensurate with that of the pandemic.

In order for the next round of support interventions to run, the contribution of Brussels is also required. For this, Kyriakos Mitsotakis raised the whole issue at the “27” appointment. And with the curtain falling on the Extraordinary Session, the Commission is now called upon to prepare emergency measures for the cost of energy. As government officials note, the reference of the conclusions to the need to adopt interventions, in order, as Mr. Mitsotakis stressed, to support the member states in the face of possible sharp increases, was included following a proposal and actions of the Greek side. “Our country was the one that insisted on the need for a common European response to the impact that vulnerable households and businesses are being hit by rising energy prices and the inflationary wave they are causing,” they said.

The ways of reaction

Before arriving in Brussels, the Prime Minister had prepared the strategy of his moves, in order to raise the issues of accuracy at the highest level and before his counterparts. From Bucharest, where he was on an official visit, he announced for the first time his intention to raise the issue of support measures at the Summit. He repeated the same in the teleconference of the European People’s Party. In fact, according to information, several leaders agreed with the proposal of Kyriakos Mitsotakis, a fact that shows that the … steps towards the implementation of interventions on the part of Brussels may not be far away.

One of the thoughts that Athens is promoting in this … road race to deal with the rally of energy prices and the great effects on households and businesses is the launch of a Fund, which will be financed by the income coming from without thus burdening the budgets of the Member States of the Union. Given, however, that such a move takes time, a more immediate way would be to provide additional fiscal space in order to exclude them from the deficit. The expenses that the EU countries will make, in order to shield the citizens. In other words, something similar to the cost of the pandemic virus, in order for governments to take measures that will pave the way for significant increases in commodities.

“The geopolitical turmoil that will be caused will also have economic consequences … At the moment we must be ready for major upheavals in the energy market, hence I am glad that my proposal for the Commission to work out and submit proposals for “How we can support consumers at European level was accepted”, said Mr. Mitsotakis, in the dialogue he had yesterday with Ms. Sakellaropoulou. He will inform the Parliament on Tuesday about the developments in Ukraine, while, according to information, the proposals that will be submitted by the Commission will be on the … table of the “27” at the next European Council.