September… of Dante for prices actions: The 6 scenarios that the government is considering to mitigate the crisis

Electricity and gas prices soar in September, dragging the entire chain of goods and services into a precision rally, which means the cost of living will worsen and the purchasing power of Greek citizens will shrink even more.

Already, electricity prices have reached a new record ahead of the week that “opens” tomorrow, with average price to be 697.25 euros per megawatt hour, with the highest reaching 871 euros.

The government has already taken measures to partially decongest the energy crisis, however these measures are not enough and are expected to evaporate from the new wave of price increases coming from September and in view of a very difficult winter that follows.

In this context, the financial staff is working at a feverish pace, in order to evaluate the situation and the fiscal space which he will have at his disposal, so that the government and personally the Prime Minister Kyriakos Mitsotakis, approve the new package of measures to alleviate the consequences of the energy crisis for households and businesses, before the opening of the Thessaloniki International Fair. There, in his customary speech, the prime minister is expected to make announcements about the package of measures that the government will take, some of which will also be permanent, as the crisis will not subside soon and will leave its mark.

At the moment no decisions have been made about it package of measures. However, there are six scenarios that the government has on the table and may activate, always according to the fiscal space available to it.

One of the measures that is gaining ground is the accuracy check. However, it is not only that. The government is aiming to activate solutions that will essentially stimulate the financial budget of households and businesses, covering part of inflation and the losses it entails in real income.

The six basic scenarios considered are the following:

– Increase in the minimum wage: The prime minister is expected to give the direction for an increase in the minimum wage, without specifying it, since there are specific procedures, which he would not want to overdo under any circumstances. Information wants the minimum wage to be established at pre-memorandum levels, that is, at 751 euros, from 713 euros that it is today.

– Increase in pensions: From January 1, 2023, it is estimated that there will be increases in pensions which, according to Labor Minister Kostis Hatzidakis, will concern all pensioners.

– Solidarity levy: The draft of the new budget, which will be submitted to the Parliament in the first week of October, will include, among other things, the abolition of the solidarity levy for civil servants and pensioners.

– Accuracy check: For 2022, the granting of a new accuracy check is being considered, in order to support the low pensioners, the unemployed and those who belong to the category of vulnerable social groups.

– Reduction of the Pretense Fee: There are scenarios for a 50% reduction of the pretense fee at a cost of 200 million euros for the state coffers, but it is one of the measures that will be judged in paragraph five and depending on the course of public finances.

– Fuel Pass 3: In the event that fuel prices remain at high levels, there will be a new round of aid.

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