Full interview in the show Open Greek Time given by the Minister of Finance Christos Staikouras, who referred, among other things, to inflation, the heating allowance and the government's measures against the accuracy.
First the minister spoke about the inflation that fell to 9,8% in October compared with September, when it was at 12,1 % noting that «In the past few months we have had more high inflation than the European average because we had very good tourist receipts and therefore higher consumption. And another interpretation is that affect and from the measures where the government receives».
Mr Staikouras stressed that «it is an element that is encouraging» and stressed that «even if there is a slight de-escalation one cannot celebrate for an inflation rate of 10%».
«The reality is that we will have high inflation this year. We expect it will tend to 10% in the final budget that we will submit,» he continued, estimating that «it will be persistent next time as well.».
The Minister stressed that «we need to intensify efforts at European level to address the root of the problem, namely natural gas. And this is where the Prime Minister's initiatives in recent months are focused. It seems that we will get somewhere in Europe in the coming period and we at the national level will continue to take interventions to help those who need it most.».
«Within the week the EIA for the oil subsidy»
At the same time, the Minister also referred to the heating allowance saying that «I estimate that in the coming week the EIS will be ready and then the implementation of the measure will come». To get a sense, the heating oil, the subsidy and the allowance add up to 500 million euros, he noted.
Regarding when the platform for the heating allowance will open, he replied that «the next time, in November and will run until December 15. The first payment will be made by the end of the year. There will be a special provision for those who received a heating allowance last year and apply again this year to get last year's assistance by December 10.».
Expenditure is more than revenue
Regarding electricity prices, he said that «we have done a good job collectively to limit the size of the problem. 10 billion out of the 13 billion in total aid this year is the electricity subsidy. The businesses that are struggling for their future and which we are helping less by 50% many of them are already getting 2/3 of this aid. You realize that if we more actively help these businesses, the cost will be enormous.».
He went on to say: «In 2020, 21 and 22 the country is running a primary deficit. That means our spending is more than our revenue. Those who say “give more” essentially want the deficit to grow. Who is covering the deficit? The country's treasury. The country fund is sound, safe but cannot cover expanded problems,» he noted.
Mr.Staikouras went on to say «that we are minus. Expenditure is more than revenue. Tax revenues are used to make up the difference in the fund. The opposition says since you have 4 billion more VAT revenue than you actually have, “give it back”. We are giving it back but the 3 billion is because of growth and the 1 billion is because of accuracy. So we take the 3 billion from growth and how do we give it back to society? We reduce taxes, abolition of solidarity contribution for all citizens from 2023, reduced social security contributions.».
For the diesel engine
Asked about a possible subsidy for diesel, he replied: «Today we do not have additional measures, we are implementing those of the TIF. I do not know how the fuel situation will develop in the coming weeks. We will act accordingly.
Mr.Staikouras stressed that «I hear the anxieties of society, we share them. Proof of this is that for three years we have been close to society. Based on European data, we have given the most aid among European countries, and the same in the health crisis. You tell me about VAT on fuel and VAT on food. Both have a significant budgetary cost so we should not implement other measures. Fuel alone annually is from 1 billion euros. When you reduce some taxes you have to be sure that they end up with the consumer.».
«Important to achieve the budgetary targets»
«It is important for the country to achieve the fiscal targets,» he continued, saying: «There is a responsibility for today and tomorrow. You saw what happened in Britain. When governments dared to lead the country into fiscal slippage the markets reacted. It needs a lot of attention. However, that does not mean that we are not close to society,» he said and went on to refer to the five interventions for 2023 in the budget.
On the possibility of new measures, he said he was not yet in a position to answer, while asked about food accuracy he said: «We hope the household basket, these 51 foods that a way out to households.».
Finally, he commented that «the opposition has been saying for three years that it will not succeed with any measure and finally it fails».
