Better mapping of the situation in the Russian-Ukrainian crisis and more data on the intensity and extent of developments are needed in order for the government to conclude whether there is sufficient budgetary space for additional initiatives to support Greek households, against energy price increases and others. basic goods.
This was pointed out today by Thessalonikithe Minister of Finance, Christos Staikouras, adding that the current situation is a pan-European problem, which requires pan-European solutions, such as the establishment of a European fund, “which will be able to fund support measures energy and other commodities) from the toolbox already approved by the European Commission for households and businesses “. In fact, these are exactly the pan-European solutions that the Minister of Finance will ask for, during the extraordinary Ecofin later today.
More specifically, in an interview with ERT3 and answering a question about whether the government is considering taking additional measures to support households against price increases, Mr. Staikouras replied: “We need to be calm and have a better mapping of developments, because when we do not know the extent and intensity of the problem, when we do not have a little more certain data, we can not take specific initiatives. We also need to see what happens at European level, because we need to have budgetary space to make concrete interventions. A pan-European problem also requires pan-European solutions. This is what the prime minister has said, this is what the Minister of Energy has already testified and this is what I will say to ECOFIN, which is being done today as an emergency “.
The impact of the Russian-Ukrainian crisis on the European and Greek economies
Asked if he shared the assessments made yesterday by the Minister of Development, Adonis Georgiadis, about a significant impact on the GDP of the Russian-Ukrainian crisis, even by 1% -2%, Mr. Staikouras pointed out that as always happens in wars, There are very significant effects in Europe and Greece, which are related to energy costs: “The main negative impact in Europe and Greece will come from the increase in energy costs, which will probably be much more significant in the near future. “And if Russia, in retaliation, stops supplying gas to Europe, the cost could rise even further,” he said, adding that there were estimates that would raise costs for Europe by up to 200%.
Referring to the first data on inflation in Europe last month, published recently by the European Commission, he pointed out that “obviously there is a large increase in inflation throughout Europe”, while in Greece, the increase was compatible with the European average. He added that the impact of energy costs on inflation is evident from the numbers, since while inflation in food is of the order of 4%, energy costs jump to 31.5%.
In addition to energy costs, another unpredictable parameter for inflation concerns cereals, as Europe imports 30% of them from Ukraine and Russia. “These two parameters (energy costs and price increases in cereals) will have a significant impact on inflation. It seems, based on current European estimates, because there is a lot of uncertainty and things are constantly changing, that this will bring an additional 1% increase in inflation in Europe “, he said, while for tourism he noted that there will probably be consequences, although without to zero the problem, as he said, these will not be substantial, since of the 18 billion euros of travel receipts in 2019, only 433 million came from Russia. He noted, however, that inflation reduces the disposable income of people who want to travel to Greece, so they may spend less in the country, resulting in an indirect impact (on income).
As for the impact of the Russian-Ukrainian crisis on European GDP, he said that, according to a first estimate, this would be borne by 0.75% to 1%, in addition to the increase in borrowing costs, which will arise for Europe and the Hellas.
Significantly reduced ENFIA
The Minister of Finance also reminded that today, among other things, the bill for the new ENFIA was passed in the cabinet, which provides that the tax will be significantly reduced for 80% of society. He added that the payment will be made after April so that the citizens can repay it in the most installments they have ever had at their disposal, ie in ten. “Individuals will pay ENFIA less this year by about 1 billion euros, compared to 2018,” he concluded.
The minister is currently meeting with representatives of the productive bodies of Northern Greece, while at 16.30 he will participate in the extraordinary Ecofin teleconference, where the European Union finance ministers will assess the developments regarding the war in Ukraine. At 20.00, Mr. Staikouras will be the official speaker at the New Year event of the Hellenic-German Chamber of Commerce and Industry in Thessaloniki.
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