Fin.Min.: No fiscal space for new measures in 2022

The Minister of Finance, Christos Staikouras, spoke on SKAI TV about the “exhaustion” of the fiscal space “for the whole of 2022”, but appeared optimistic that based on the implementation of the budget and the expected revenues from tourism, it might be possible to implement new measures for the benefit of citizens.

Mr. Staikouras noted that he felt the fiscal space will be found, but at the same time the reduced VAT on catering and transport must be extended by the end of the year and the solidarity contribution for all employees and retirees must be abolished in 2023.

Discussion on new fuel support is premature

Asked if there would be a fuel subsidy in July, he said the current program would be completed by the end of June and “it was too early” to have a similar discussion now.

For electricity, the minister referred to the measures taken so far and cover the period until June. He added that from July for one year, 70% – 80% of the charge will be covered and the subsidy will continue, in order for the cost of the accounts to be at a low level. The program, he said, has a total cost of 2.2 billion euros, of which 900m euros are from the budget. While, as of May 6, Greece has spent twice as much resources as the European average to support households and businesses.

Estimate for GDP

Mr. Staikouras also stated that with the current data this year a primary deficit of 2% of GDP is predicted, while the Ministry of Finance estimates an increase of GDP by 3%. According to the minister, this forecast is more conservative than those of the EU, the IMF and the BoG, which talk about growth of 3.5% – 3.8%. While, for the investment level in 2023, he said that it is a goal “that we are approaching more and more” and characterized as “the last step” the exit from the regime of enhanced supervision in August this year.