By Chrysostomos Tsoufis
It may not exist at this time fiscal spacebut the government is planning mitigation measures in two phases. Initially, after June there will be further interventions to address energy accuracy focusing on fuel.
THE horizontal discount of 15 minutes in diesel has already been announced that will continue in July. At least 2 government ministers – Adonis Georgiades and Costas Skrekas – have been announced in advance extension of the fuel subsidy beyond June. But it is doubtful whether it will continue to be done through fuel pass. THE federation of gas station owners demands that the same applies to diesel. Expansion of the transport equivalent or even reduction of VAT on fuel for some islands are some more of the measures that have fallen on the table.
THE budget implementation process will be vital in finding the necessary fiscal space. Already in the 4 months the income is increased by 1.7 billion € versus estimates. The amplifier works the de-escalation of gas prices in the area of ​​85 € / MWh and this is because the measures announced by the government for electricity – and also burden the budget – were designed with the assumption of 100 € / Mwh. But the factor that changes everything is tourism which moves extremely. In this context, his appreciation is of particular value Governor of the Bank of Greece Giannis Stournara that there are clear indications that the revenues may exceed those of 2019 which is the milestone year for Greek tourism.
With the additional revenues from tourism, the government will be able to implement them as well its commitments for 2023 tax breaks – election year – such as total abolition of the solidarity levy. In the Eurogroup of June Greece will officially get the OK for the abolition of the solidarity contribution in the private sector and the permanence of the reduced insurance contributions. By October and the submission of the draft budget for 2023, the space for the abolition of the contribution to retirees and civil servants will have been found.
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