Government to examine financial measures depending on developments, Finance Minister says

The government is monitoring developments in the economy and always responds in the context of the capacity of the economy and the public finances, Finance Minister Makis Keravnos has said, adding that the government is not dragged by “slogans and pressures.”

The Finance Minister will on 21 October take part in a meeting between the President of the Republic and social groups and trade unions, while on 24 October, he will meet with the parties supporting the government to discuss their proposals over the new support package.

“We will listen to and consider these measures always in the context of our capabilities,” he added, speaking to CNA.

Concerning a public discussion over a new package of support measures, Keravnos on 18 October said the Ministry is constantly examining measures to support vulnerable groups and the middle class.

He also said the Ministry is considering measures such as terminating VAT on the charge to cover the carbon trading system on the electricity bills, but faces legal issues.

Keravnos denied that the government restored the zero VAT rate, noting that zero VAT was restored only for specific products and specific population groups when some of these products have registered price increases up to 150%. “That’s why it was decided that the zero VAT would return for these products,” he said.

As he noted, “The government is monitoring the developments with every seriousness and responsibly responds every time, always within the capacity of the economy and the public finances.”

“We are not dragged neither from slogans nor pressures. Everything is being done having the vulnerable, the middle class and the capabilities of the economy and the public finances at the epicentre,” Keravnos went on to say.

Furthermore, the Finance Minister pointed out the uncertainty in the external environment and that the government from 2025 will start repaying the loan received from the European Stability Mechanism during the 2013 financial crisis as well as the contingent liabilities that may arise due to problems in contracts of infrastructure projects.

(Source: CNA)