Filenews 24 October 2024 - by Eleftheria Paizanou
One way or another, horizontally or targeted, the electricity price subsidy will continue after the end of the month, when this measure, which contributed significantly to the relief of households, expires.
This was evident during yesterday's broad meeting of senior members of the co-governing parties with Finance Minister Makis Keravnos.
The meeting was attended by the chiefs and financial staffs of DIKO, EDEK and DEPA, as well as technocrats of the Ministry of Finance, who gave specific answers to the party proposals.
According to "F" information, the minister, after briefing party officials on the good course of the economy, the improvement of economic indicators, the reduction of public debt and the fiscal risks faced by the state, conveyed his thoughts to party officials. In particular, he conveyed to them his concern about the continuation of the electricity subsidy, as given so far. As we have been told, the ministry, following the suggestions of the parties, seems to prefer the continuation of the electricity subsidy but in a more targeted way. Apparently for fewer.
In his official statements, when asked, the minister in charge merely said that "it is an issue that concerns us a lot".
The parties' proposal for the inclusion of low-income pensioners in the EAC special tariff 08, which includes vulnerable consumers, seems to be gaining ground.
In addition, under the microscope of technocrats is the proposal that the cost of tariff 08 should be paid by the state, instead of being passed on to other consumers, as is currently the case. A competent source told "F" that the way in which the cost will be covered is being studied.
The Ministry of Finance informed the coalition parties that scenarios are also being studied for the abolition of VAT on the cost of purchasing emission allowances, which burdens consumer charges on EAC bills. This proposal has been put forward by all three co-governing parties.
Cost reduction for housing
Makis Keravnos revealed to the government's associates the plans being made to address the burning housing problem. The Ministry of Finance, in cooperation with the Central Bank, is examining the creation of a Single Housing Agency. Technocrats are also considering granting grants and tax deductions to reduce rental costs.
Under the microscope are sponsorship schemes for owners of uninhabited buildings to rent them at a lower price. The granting of a sponsorship of between €15000 to €20,000 is being considered to specific owners to renovate the properties, aiming to rent them at around 30% of the market price. The income generated by these owners will be tax deductible.
Plans are also being made for the development of more plots in urban areas.
Among other things, the imposition of some taxation on idle plots and the provision of incentives for their development are examined.
Another scenario under consideration is to give before the completion of a residence the amount of state sponsorship to which refugees are entitled. That is, refugees should be able to use the amount of the grant as initial capital, in order to be able to secure loans from banks.
Other measures under consideration
The government's new package of anti-precision measures is expected to be announced in November. The measures will be targeted, of longer duration, targeting vulnerable groups and layers of the middle class of the population
Yesterday, the finance minister assured party officials that whenever necessary, the government will intervene and announce measures when justified by official data.
The measures proposed by the parties have been costed and evaluated to see which ones can be included in the new package. As "F" is informed, the extension of income criteria for child and disability benefits, for student sponsorship and housing schemes for young people is being considered, in order to increase the number of beneficiaries. The Government, as we have been told competently, seems to prefer this possibility.
In addition, the release of the allowance for people with disabilities from the procedures of the UGS is being examined. That is, to differentiate specific criteria that excluded some in this category.
