The financial staff has been engaged in finding the required amount that will "support" the package of measures to deal with the increased prices of electricity, pending the European "reaction", if any, within May.
If Europe does not react in the end, Greece, as the Greek Prime Minister has stated, will proceed with the implementation of a national plan. Such a move, however, entails a high budgetary cost, which alone to support households and businesses in the energy sector could, according to initial estimates, reach up to 4 billion euros by the end of the year. The exact amount will essentially depend on the course of the wholesale price of natural gas.
The main axes, but also the elements that will determine the next steps of the government are:
- The course of the budget in the first quarter of the year and especially in March, with the relevant announcements expected today. The course of the revenues will also show whether the revenues "endure" to continue to "cover" the support measures.
- The positive impact that will have the best of the expected course of deficit and growth in 2021, as stated by executives of the financial staff, giving additional budgetary margins to the government. The relevant announcements are expected from Eurostat on Friday, when the data of the Hellenic Statistical Authority and the General Accounting Office for 2021 will be validated.
- Also on Friday, Standard & Poor's report on the Greek economy is expected. In fact, according to market participants, a positive valuation by the rating agency would open a window of opportunity to enter the markets in the next period.
- Following the submission of the supplementary budget, which provides for an increase of expenditure by 2 billion euros and the Public Investment Program by 600 million euros, a "cushion" of 1,2 billion euros has already been created to finance support measures in next time period.
- In the coming days, the relevant regulation is expected to be submitted for the taxation of the super profits (if any) of the electricity companies at a rate of 90%.
- At the end of April, the government will proceed with the submission of the Stability Program, in Brussels, according to which the primary deficit this year will be higher close to 2% of GDP, from 1,4% of GDP provided for in the 2022 budget.
The week after Easter, on April 29, the first data on the course of inflation for the month of April are expected to be announced by Eurostat.
photo pvproductions, Image license by freepik.com
