It is estimated that on an annual basis, every 10 euro increase in the price of natural gas costs the budget around 300 million euros.
By Chrysostomos Tsoufis
With private consumption continuing beyond the first 3 months at most positive rates despite accuracy, investments also at a consistently good level and tourism …flying with performances so far better than the record year 2019, the Ministry of Finance should have a celebration every day.
The estimate for 3.1% growth this year it will in all probability prove to be quite conservative, with the result that the fairly large fiscal space that will be created will be able to be used in a multitude of household and business support measures and tax reductions. And even in pre-election period!!! Even the government itself could not think of a better scenario.
And then came Russia… At first he reduced his flow natural gas through the main Nordstream supply pipeline by 60% presuming – as the Germans claim – technical problems. And on July 11th completely closes the pipeline for 10 days for maintenance, with the Germans especially considering that the pipeline would never be reopened. Result; The scenarios for energy statement they started to give and take with the result that the price of natural gas has exceeded €175/Mwh. 20 days ago it was at €84, so its price has more than doubled.
The problem lies in the fact that the government has budgeted to give €1.1 billion from the budget for electricity and natural gas subsidies by the end of the year, having set the base price for natural gas at €100/Mwh. The longer it stays above €100, the more it costs the budget. It is estimated that on an annual basis, every €10 increase in the price of natural gas costs the budget around €300 million. So basically, if the predictions for energy winterwhatever money tourism and investment bring in will be swallowed up by electricity subsidies.
That is why the financial staff, both in their public appearances and in private, presents themselves very careful and frugal in promises, with no inclination to succumb to the pre-election sirens of benefits except for the already promised abolition for 2023 of the solidarity levy and civil servants and pensioners.
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