The government wants to find permanent measures and not rely on “temporary subsidies” to assist citizens in facing the cost-of-living crisis, Government Spokesperson Constantinos Letymbiotis said on Wednesday.
Talking to journalists after a Cabinet meeting, Letymbiotis stressed that the government’s aim was to implement permanent, not temporary, measures to alleviate consumer burdens. He noted that “inflation is currently at low levels compared to the same period last year.”
When asked whether the Government was considering support measures for consumers due to increases in fuel prices, electricity costs, and interest rates, he said that the government has already taken additional steps to support households, such as applying a zero VAT rate to certain products and reducing it for others. He also mentioned that the Ministry of Finance was examining the possibility of expanding the list of products under this scheme, based on the state’s economic capabilities.
“The government’s goal is to promote measures that will be lasting, such as increasing the penetration of renewable energy sources in households, so as not to depend on a temporary subsidy policy,” he said.
Regarding taxing bank profits due to high interest rates, the Spokesperson referred to statements made by the Minister of Finance and mentioned that a meeting between the Minister and the Association of Banks was pending. He noted that the Minister of Finance has already highlighted the difference between lending and deposit rates and has proceeded to make relevant remarks to banking institutions.
The government is facing growing pressure to urge banks to lower their interest rates for lending, which have skyrocketed, squeezing consumers’ pockets further and raising concerns that a new toxic loan crisis could be imminent.
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