“The government is exhausting all available options without risking consequences for the country, either in the European Union or in the markets, particularly in a difficult environment marked by major turbulence in Europe’s bond markets, especially in France,” Deputy Prime Minister Kostis Hatzidakis said in an interview with ERTnews on Wednesday morning (14/10).
“Support for 95-octane unleaded petrol will continue, but in a different form. The subsidy for diesel will also continue, reviewed month by month. More broadly, support will continue for as long as the problem persists. We have set money aside because we know we face a harsh winter in terms of energy.”
Heating oil price to be well below €1.75
“At the same time, there will be threefold support for heating oil: a 30% increase in the allowance for vulnerable households, state support, and I believe there will be corresponding support from the refineries.
They have been helping to tackle the problem since the summer, and I understand they will continue in the same vein.
It does not matter whether the money you receive from the refineries comes through taxes or a discount, since the result for consumers is the same,” he added.
Discussions with the refineries began last July, when the European Commission was closed for the summer holidays and the opposition was also on holiday, including some parties that are raising the issue now.
“The starting price for heating oil will be well below €1.75, the level pledged by the prime minister,” Kostis Hatzidakis said.
“I believe that if this drags on for too long and becomes very serious, Europe will at some point adopt different policies too. Easing has been under way since last spring, which is why an initial energy escape clause is in place, encouraging energy-saving measures,” Mr Hatzidakis continued.
“In this context, we submitted our proposal for the energy escape clause, which was approved last week. But what we are discussing is greater room for flexibility.”
On Guilfoyle’s removal
“These are matters concerning the US and do not affect Greek-American relations,” the deputy prime minister said, commenting on Kimberly Guilfoyle’s removal from her post as US ambassador in Athens, adding:
“Discussion of Ms Guilfoyle had begun in the American press even before Mr Marco Rubio came to Athens, and the visit was successful. Both sides stressed that Greek-American relations are at a very high level. The progress made in Greek-American relations over the past few years and the past year will continue. There is no doubt about that, and I think both we and the United States have every reason to work in that direction.”
The IMF report on Greece
Asked about a report by the International Monetary Fund (IMF) saying that the Greek economy would enter a period of slower growth, Kostis Hatzidakis said:
“Traditionally, including in previous years, the International Monetary Fund has made forecasts, particularly on growth, with lower figures than were ultimately recorded.
Greece’s budgets have proved reliable in recent years. Economic policy has proved even more reliable, and we are very cautious in our forecasts and in implementing our economic policy. That is also why we have not opened the taps indiscriminately—as some are proposing—for energy measures.
We do not want to be callous or indifferent, of course, but nor do we want to take the populist path. We are staying on the middle ground.”