Fin.Min.: Impact on energy and inflation due to the war in Ukraine

“The Greek government has requested through the competent minister Costas Skrekas, and will be discussed today in the Council of Energy Ministers, to create a European Solidarity mechanism for the energy crisis, intensified by the Russian invasion of Ukraine,” said the Minister of Finance Christos Staikouras, speaking on SKAI radio.

Mr. Staikouras noted that according to the Greek proposal, the Member States will be able to obtain low-interest loans to finance measures to offset the effects of high energy prices, while loans will not be calculated in the deficit and public debt of the Member States.

Mr. Staikouras stated that according to the estimates of the Ministry of Finance, due to the Ukrainian crisis, we will see effects mainly on energy, but also an impact on inflation, borrowing costs and financial markets.

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He estimated that we may see negative effects on tourism, mainly in Northern Greece but also a reduction in travel receipts by up to 5%.

He also said that the inflationary consequences will also affect imports of cereals and cereals.

The consequences of SWIFT

The Minister of Finance stressed, however, that Europe acted in a timely, fast and united manner in this crisis in Ukraine, while he estimated that additional sanctions, such as leveraging the SWIFT mechanism, will have an impact on European economies.

He also made it known that Greece has requested in writing from European fora the exclusion of defense spending from any fiscal targets in the future.

He finally stated that the new ENFIA will be legislated in the coming weeks.