Greek FinMin: A permanent increase in pensions is on the way

Τhe positive picture of the Greek economy is threatened by high inflation, due to soaring energy costs, the Greek Finance Minister, Mr Christos Staikouras told to SKAI channel. The minister stressed that the positive picture is shaped by tourism revenues which, if they continue to increase at the same pace, may exceed those of 2019. The very high number of new investments, the high number of hires, the shrinking unemployment rate and the increased tax revenues contribute to the positive course of the economy, as well.

In addition, he stressed, household deposits continued to grow in July.

He also added that very high inflation is nibbling away at the disposable income.

The fiscal space, created during the last two months, added Mr Staikouras, will be used to support citizens in the last quarter of the year and at the beginning of 2023.

Trends in revenues

Mr Staikouras also reiterated that we have to wait for the first week of September, when the last quarter’s GDP will be released, in order to better understand the general trends in revenues.

Only in this way, we are going to understand the fiscal margins of Greece, that will be used in order to help the citizens at the end of the year.

Attention to consumption

Then, he also stressed that gas constitutes a huge problem that requires a broader European solution, while he advised citizens to be careful with consumption.

“If prices remain high, more subsidies will be needed. Therefore, additional resources will be needed to support citizens,” he said, reiterating that the Greek government is going to support the Greeks for as long as needed.

He estimated, however, that the need for subsidies in the coming months would be less than that of August and September.

New subsidies for fuels

He also left open the possibility of new subsidies for fuels, with gas being their first priority.

Concerning the heating allowance, he said that the Greek government intends to give the same amount as last year. However, he stressed that “If gas prices increase further, the state budget should be larger in order to cover the costs”.

He also said that, in 2023, the  Greek Prime Minister intends to abolish the solidarity levy for the Greek state and its pensioners (an intervention of 450 million).

He also said that a permanent increase in pensions is on the way, though he did not specify the amount.

As for the minimum wage, Mr Staikouras stressed that the institutional process will be followed, in the first half of 2023, in order to conclude to the final amount of the increase, without affecting businesses.

As far as tax cuts are concerned, he added that they are permanent and he also explained that: “We want fiscal stability with permanent tax cuts so as the citizens can afford their spending on their own”.