By Penelope Galliou

The government insists on supporting citizens and relieving them from emerging problems with targeted interventions, validating its intentions and policy of prioritizing everyday life.

New subsidy on electricity billstargeted interventions to be precise, continuation of the economic policy in the direction of income enhancement, were only some of the everyday issues that Kyriakos Mitsotakis put a “check” on during his interview with SKAI and Sia Kosionis, but causing the reaction of opposition.

The “line” of government initiatives that will give households a breather was given by the prime minister, announcing the government’s decision to impose a two-month end to the profits of energy companies, in order to subsidize electricity bills in August. Having weighed all the data in the energy sector and the prices of the wholesale price of electricity, which are pulling the upward trend across south-eastern Europe as far as Hungary, and after the meeting that preceded it yesterday morning at Megaros Maximos, Kyriakos Mitsotakis announced the decision of the government to impose for two months an extraordinary fee to electricity producers, in order to relieve the citizens in August. This is an extraordinary fiscal intervention. “Let’s use this income to be able to relieve the electricity bills in the month of August. Because at the moment, with the course of prices, the citizens in August would actually see a sharp increase in electricity prices” said the Prime Minister, while the specificity of the announcement is expected this morning from the Minister of Energy and Environment Theodoros Skylakakis.

In relation to inflation, he pointed out that it is a “European problem”, while he emphasized that compared to the rest of Europe, Greece has reduced figures. “There is no magic way to make prices drop 10% in one day,” said Kyriakos Mitsotakis speaking to SKAI.

The prime minister appeared modestly optimistic about the course of inflation and, by extension, the accuracy, which remains in the target of the government. He even estimated that inflation will fall further, and despite the fact that the problem is not only Greek but global and multi-parametric, a significant decline in inflation is now visible and the de-escalation of prices is a first positive sign. “Inflation, I believe, will fall further. And as long as inflation falls further, in some products – not all obviously – we will start to see a de-escalation of prices”, he underlined while emphasizing that the issues of the cartels are controlled by the Competition Commission, which is strengthened by the government with 50 more officers. However, Mr. Mitsotakis once again ruled out the possibility VAT reduction, citing the example of Spain, which has only a temporary benefit and then prices tend to go back to where they were before and the benefit is eventually reaped by the entire supply chain. “We will not do it” he said, realizing that this sounds unpleasant, “but I cannot adopt a measure which I am sure will be ineffective and will ultimately deprive money from the Budget” he emphasized and repeated the government’s aim, which is the answer to be precise given through disposable income support. “Revenue is the income, the salary that enters the household every month. As real wages rise, disposable income improves. As taxes and social security contributions decrease, real income increases. Our policy from the beginning, the central objective of our policy, was a significant increase in wages. We are already seeing such signs, the minimum wage has increased by 28% – I want to remind you – since we came into action” he noted.

In the light of accuracy, the prime minister also referred to the prices of ferry tickets, speaking of “an issue that concerns me a lot”. In fact, he left open the possibility of intervention if necessary.

Kyriakos Mitsotakis however, he avoided fostering a climate of gratification in view of the TIF, insisting on promoting prudent management that always prioritizes the fiscal discipline and stability of the country. “I think I will probably disappoint those who expect that today there is fiscal space for us to come up with a generous package, as an early Santa Claus to distribute money that the state does not have,” he said. However, he recalled the government’s commitment to support low-income pensioners at the end of the year, to reduce employer contributions from 2025.

SYRIZA: Megalostomies Mitsotakis

The announcements and the plan presented by Kyriakos Mitsotakis provoked the reaction and the questioning of SYRIZA, which in a statement it issued spoke of “big mouths, which, however, only hide its willingness to deal seriously with the problems of the citizens”. “Kyriakos Mitsotakis has confirmed once again what everyone knows: His distance from the real problems of the citizens is ever increasing, the policy of his government does not bring anything good for the social majority” the announcement concluded.

PASOK: There is no “fig leaf for the government”

For lack of a plan accused the government and PASOK, stating in his announcement that “Mr. Mitsotakis confessed to the government’s ineptitude and the lack of a strategic plan for the country by talking about the existence of “skyrocketing” profits of energy providers, the need to strengthen the Competition Commission and a half-truth that in Spain there was a price benefit from the reduction in VAT. However, there is no fig leaf for the Government of arrangements and lost opportunities”.

KKE: To strengthen the current of questioning

“The prime minister’s interview was yet another monotonous and provocative repetition of the well-known narrative about “distortions in the market” in order to justify the explosive increases in electricity, food, ferry tickets and other items of broad popular consumption” the KKE commented on the interview of Kyriakos Mitsotakis.