Vassilis Korkidis, president of the Piraeus Chamber of Commerce and Industry (EVEP)
PRECISION undermines social cohesion and the government shows that it received the messages sent by citizens in the European elections, advancing in the fight against rigor all the possible “weapons” it has in its hands.
The announcement by Prime Minister Kyriakos Mitsotakis of the imposition of an extraordinary tax of 33% on excess refinery profits, worth an estimated value of around 300 million euros, is indicative. This money will go towards supporting the budget and certainly towards supporting vulnerable groups at the end of the year and especially pensioners with low pension levels, who have not seen an increase due to personal difference. The temporary solidarity contribution will be calculated based on the excess profits of the tax year 2023, as defined by European Regulation 2022/1854, i.e. 33% of the taxable profits of the year 2023, which exceed 20% of the average results of the years from 2018 to 2021.
It should be noted that excess profits from 2023 will be calculated and reflected in companies’ declarations for the 2024 fiscal year.
IT IS NOT This is the first time that the government has turned its attention to vulnerable social groups, as it was only recently announced that the existing measures with the “baskets” will be maintained until the end of the year.
Remember that from January 1, 2024, VAT rate reductions became permanent on a set of goods applied during the pandemic period, such as transport, gyms, dance schools, cinemas and a set of goods related to public health, with an annual cost of 305 million euros.
Additionally, in the battle of precision is the updated ekatanalotis platform. Furthermore, the reduced rate was extended to coffee, cocoa, tea and chamomile offered in restaurants, but also to taxi fares, with an estimated cost for the semester at 77 million euros.
Furthermore, the reduced rate on non-alcoholic drinks was set at 13% for deliveries of goods, while on non-alcoholic drinks served it was restored to 24%.
Of course These provisions come at a time when punctuality continues to harm family income, creating problems for the cyclicality of the economy. I never tire of highlighting that healthy entrepreneurship will be useful in the effort to combat rigor and speculation, as long as the State uses the services and mechanisms it has in this regard.
The market world is justifiably worried, but largely recognizes the prime minister’s attempt to take the country out of the danger zone once and for all. The fairest approach to the customer and even in a prolonged period of rigor is a single price, low price, throughout the year.
Of course, the solution to the big problem of accuracy is, in any case, to increase disposable income. What is certain is that the intensity and duration of precision are difficult to deal with, as they depend on climate, energy, production and imports, which are difficult to control. Therefore, the reforms that are already being implemented in our country to curb revaluations should probably remain in the market even when accuracy disappears.
I WOULD LIKE emphasize that precision is one thing and inflation is another, because confusion between these two concepts and situations is common, sometimes due to lack of knowledge, sometimes out of convenience, sometimes on purpose. We are accurate when the price level is high compared to our income, and of course the estimation of accuracy differs for each person, whether employer or employee, and for each individual household.
We have inflation when prices change at a faster rate than usual, which as a rule we define at around 2%, because at this rate of variation we consider that there is no problem in the national and European economy.
Let’s not forget that even in times of deflation, like the 2010s, we had dramatic precision. What links inflation to accuracy is price.
Let’s hope that we are at the beginning of the end of this inflation cycle and that, when prices fall, yields will not only remain at today’s highest levels, but will continue to rise even further, thus definitively moving away from precision.
ACCORDING TO with Eurostat, annual inflation in Greece decreased by almost one point, from 3.2% in April to 2.4% in May. In fact, Greece is the only country in the eurozone where there is a decrease in the index on a monthly basis and not just a comparative slowdown in the rate of price growth.
Negative energy inflation (-1.7%), the three-month “block” on product offers that significantly limited valuations, the containment of prices with “baskets” and controls by the Ministry of Development (YPAN), but also The fact that market prices either did not increase, or were formed at levels lower than last year, are considered the main factors for the “fall” of the harmonized consumer price index this May.
As for the “positive deviation with a negative sign”, albeit marginally with a variation of -0.3%, of our country’s index compared to its counterpart in the Euro Zone, we can say that it did not just happen, but was successful with the combination of government measures and the response of companies in the domestic market.
Without a doubt, prices on the Greek market compared to disposable income are not low, but at least the numbers show that they have stopped increasing and, of course, the objective remains to start decreasing.
END, The European dimension of the price issue also requires the Prime Minister’s post-election intervention with the EU President. to the practices of multinationals of selling similar or identical products at different prices, depending on the size of the market, thus harming Greek consumers. It is a serious issue, which should be on the EU’s strategic agenda. for the next five years. The single market is not just about businesses, but also about consumers.
Punctuality must be combatted effectively, not only at a national level, but also at a European level, with allies in other European countries, with smaller markets, which as a rule are faced with unfair practices.
EBEP’s healthy entrepreneurship will be useful in the effort to combat precision and end speculation, and it is good that the State is using the digital services and mechanisms it has in this regard.