Hatzitheodosiou: The measures are positive, but they are not sufficient for the energy crisis

The head of the Athens Chamber of Tradesmen requests reductions in VAT and excise tax to address energy costs.

Hatzitheodosiou: The measures are positive, but they are not sufficient for the energy crisis

This article is an AI translation of an original piece published in Greek. Read original

«Today’s announcements by the Prime Minister leave us with a bittersweet feeling. On the one hand, I want to point out that positive measures were taken that can give some “breathing room” to society and especially to small and medium-sized businesses», notes the head of the EEA Giannis Hatzitheodosiou.

«I am not referring so much to the increase in the diesel fuel subsidy, especially if we consider that until a few months ago it cost the consumer about 1.7 euros per liter and today it has exceeded 2.2, marking an increase of about 30% within a short period of time. If the energy crisis continues, the subsidy that was announced and which is essentially 5 cents higher than the one that applied until today, will soon “evaporate” due to the new increases that will come. I will focus mainly on the increase in the number of installments for overdue debts.

At last the government listened to a longstanding request of the market and announced a 120-installment arrangement from the 72 that have been in effect in recent months. The Athens Chamber of Tradesmen had proposed this increase for quite some time and today’s development shows in the clearest possible way that our request was not excessive.

We are therefore pleased that it was heeded, albeit with great delay, however I must point out that if it is not accompanied by write-off of the excessive surcharges, the result will not be the desired one.

We consider it unreasonable for a debt, due to inability to repay it, to have multiplied because of interest and fines. Only if these unreasonable surcharges are removed from the way will substantial support be given to debtors as well as a boost to public finances.

It is my longstanding position that it is better for the state to ensure that it will receive a reasonable installment every month than to demand from the debtor such a high amount that they will never be able to repay it. I view positively the “brake” being put on the Services —and indeed it was delayed— as there were many complaints from borrowers about onerous terms and practices.

The concern of all of us, government and institutions, must be the preservation of social cohesion and of course the protection of the primary residence for those who truly need it. As for the pre-announcement of the availability of heating oil below 1.75 euros per liter, we will have to wait for the official announcements in two weeks for the price that will apply. However, I must remind you that in the corresponding period last year the price was much lower and reached 1.10 euros per liter.

In conclusion, the measures are welcome although some of them could have been adopted a long time ago. However, they are not sufficient to address the unprecedented energy crisis. As a Chamber, we continue to support the need to reduce VAT on basic goods and the excise tax on fuels, even for a limited period of time. If we do not proceed even now with bold solutions, the consequences of the enormous energy cost will be painful both for households and for businesses».

v
Privacy