2023 is the first year in which the Greek economy will operate outside of the tight fiscal surveillance that began in 2010
The evening ends with a roll call vote Parliamentthe top parliamentary process of sanctioning the State Budget for 2023, which is a vote of confidence in the government.
The five-day debate will close with the speech of Prime Minister Kyriakos Mitsotakis, the leader of the official opposition Alexis Tsipras and other political leaders.
According to the planning that has been done, the meeting starts with the parliamentary representatives of the parties and from noon, and after that, the positions of the political leaders will take place in the reverse order of their parliamentary strength, with G. Varoufakis first, while Finance Minister Christos Staikouras also spoke after Alexis Tsipras and before the Prime Minister’s speech.
The young budget it is called upon to be executed in conditions of great uncertainty at the global level, due to the energy crisis, inflation and the rise in the cost of money.
In accordance with Ministry of Finance, in 2023 the energy crisis and the economic consequences of the war in Ukraine will inevitably continue to affect the Greek economy both through the channels of inflation and uncertainty, and through the slowdown of growth in the Eurozone marginally above the level of stagnation. For this reason and beyond all others, there is a reserve of 1 billion euros in the budget which, according to Finance Minister Christos Staikouras, will be used to continue subsidizing electricity bills next year.
However, at the same time, 2023 is the first year in which the Greek economy will operate outside of the close fiscal surveillance that began in 2010 with the first economic adjustment program. This fact, according to the Ministry of Finance, signals an upgrade of Greece’s economic prospects, becoming a lever for attracting investment and bringing the country closer to regaining investment status. Given, among other things, the low cost of servicing the public debt, the significant cash safety reserve, but also the prudent fiscal policies.
In its basic figures, the new budget foresees the following:
*’GDP rise by 1.8% next year from 5.6% this year, with GDP reaching 224.134 billion euros, from 210.170 billion euros this year.
*Inflation is forecast to rise 5% in 2023 from 9.7% this year.
*Private consumption will increase by 1% from 7.2% this year and public consumption will decrease by 1.5% from a 0.2% increase in 2022.
*High growth rates will also be recorded in 2023 by private investments, which will increase by 15.5% from 10% this year.
*Exports of goods and services are forecast to increase by 1% (from 9.7% this year) and imports of goods and services by 2.6% (from 10.1%).
*Unemployment will drop to 12.6%, marginally lower than this year’s 12.7%.
At the same time, the budget includes the new relief measures for households and businesses with the permanent reduction by three percentage points of the insurance contributions of approximately 2.2 million workers in the private sector and the abolition of the special solidarity contribution in the private sector, with the extension of the measure to the State and pensioners.
Whereas, the new measures starting in 2023 include, among other things, the new increase in the minimum wage from May, the reform of the special salary of the National Health Service doctors, the settlement of salary requests of the Armed Forces, the abolition of the special levy 1% in favor of the Public Employees’ Welfare Fund (TPDY), the increase in the student housing allowance, the extension of the maternity allowance in the private sector, the incentives for the extension of full-time employment, through the reduction of social security contributions and the benefit fee, the suspension of VAT for new buildings and the framework of housing support actions, focusing on the new generation. And as stated by the Minister of Finance, Chr. Staikouras, it is estimated that in the next period there will be additional fiscal space that will be used to further support mainly the most vulnerable households in the country.
RES-EMP
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