Opposition: The government's measures are "fireworks"

PASOK speaks of a "tax-hungry prime minister", ELAS points to the interventions of other European countries, SYRIZA says "a lot of oil and no fritter at all"

Opposition: The governments measures are fireworks

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

"Too late - too little" is the condensed reaction of the opposition to the measures announced yesterday by the government for fuels, while prices at the pump have made their effects felt on households and businesses.

All parties focus on the prime minister's responsibilities, whom they accuse of fireworks measures and of seeking a European alibi, even though other European countries have made more generous interventions.

According to PASOK, "after 12 days of keeping citizens... waiting, Mr. Mitsotakis came to address fuel inflation with more of the same. He has no plan and is engaging in a few days of communication management to appease social discontent".

The party's spokesperson Kostas Tsoukalas, moreover, calls the prime minister a "tax-hungry politician who obsessively refuses to reduce the excise tax, while other European countries are showing him the way", namely that of more dynamic intervention.

PASOK is once again calling on the government, "even at the eleventh hour", to take action with:

  • Reduction of the excise tax on motor fuels and heating oil.
  • A mechanism for returning to consumers the additional VAT revenues generated by the increase in prices itself, following the Italian model.
  • Real and systematic checks on profit margins throughout the chain, from refining to the pump.
  • A permanent mechanism for taxing the excess profits of oligopolies in every sector of the economy, which will be activated following a documented recommendation by the competent independent Authorities.

ELAS: Other European countries show the way

"A temporary subsidy of a few cents on diesel, a voluntary move by the refineries and repeated promises for heating oil do not constitute a substantial package of measures," notes ELAS.

Its spokesperson Theoni Koufonikolakou stressed that "temporary fortnightly announcements are not capable of protecting citizens from the existing danger" and referred to the four tools for dealing with the crisis that Alexis Tsipras presented a few days ago:

  • Imposition of a cap on the profit margin throughout the chain, from the refinery to the gas station.
  • Extraordinary taxation of the excess profits of the refineries, which exceeded 1.9 billion euros in the past half-year.
  • Reduction of the Special Consumption Tax to the minimum permissible limit of the European Union.
  • Reduction of VAT on fuels to 13%, as Spain did.

Referring to experience, she stated that subsidies are the least effective measure, at a time when Greece records the 11th most expensive gasoline worldwide, surpassing in retail prices EU countries such as Italy, Belgium, Austria, Sweden, Ireland and Luxembourg. While the Competition Commission has also pointed out the very high prices in the country even before taxes, due to the longstanding duopoly in refining.

Regarding the government's argument about European fiscal constraints, Ms. Koufonikolakou explained that EU rules distinguish permanent measures from emergency interventions. That is, the Commission itself, when evaluating energy support measures, has calculated the net fiscal cost subtracting, where they existed, the revenues from taxes on the excess profits of energy companies.

SYRIZA: "...And no fritter at all"

"The wise people say something very simple: Oil, oil, oil, no fritter at all," is the reaction of SYRIZA.

According to its parliamentary spokesperson Christos Giannoulis: "Whatever patchwork measures and allowances Mr. Mitsotakis announced today, he cannot give answers to two simple things: First, why does he not accept SYRIZA-PS's proposals that have an immediate, positive impact on citizens' income? And, second, why does he not accept the reduction of the Special Consumption Tax to the minimum limit of the European Commission?"

As he further explains, "if the tanker truck leaves with prices of 22 dollars profit per barrel, for the consumer it is too late".

 

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