By Chrysostomos Tsoufis
Drachma inflation records the ELSTAT for 6 consecutive months with May turning us back to the distant 1995. Of the 10.2 points of increase, 6.6 come from energy ie more than 60%.
How could it be otherwise when within a year gas increased by 123%, electricity by 89%, heating oil by 65% and fuel-lubricants by 29%.
The future is probably being erased dark since as long as Russia does not withdraw from Ukraine, energy prices will remain very high cutting inflation. But even if the war ended tomorrow and energy prices fell sharply, again the accuracy on the shelf would remain. To be precise, according to economists, the fall in commodity prices would begin 3-4 months after that of gas and oil.
And here is the problem. While everything shows that we will not easily get rid of the monster of inflation and it is obvious that interventions are needed in both food and fuel, the government through him Theodorou Skylakaki who spoke to SKAI, states that has exhausted the budget margins for this year with the measures taken for electricity. «We gave what we had“, Said the Deputy Minister of Finance.
European intervention could function as a machine god. That is why the Summit at the end of the month is extremely crucial. Utilization of the remaining 234 billion euros from the reconstruction fund or other central energy interventions would loosen the hands of the government, freeing up resources that could lead to other actions to alleviate citizens.
If Europe is inactive Again, additional resources could only come from better-than-expected budget execution and, above all, tourism results. In contrast to the European solution, however, it will take time for any additional revenue to be identified and then utilized.
Something like that scenarios for a second check of accuracy, new fuel subsidy or reduction of VAT on some products are currently on the ice. The margins are so suffocating that the Ministry of Finance says that if, for example, they chose to reduce the VAT on some foods, they could not give the retroactive subsidy to electricity. Δεῖ δή χρημάτων, καὶ ἄνευ τούτων οὐδὲν ἔστι γενέσθαι τῶν δεόντων.