Parliament is heading for a showdown over bank taxation and foreclosure laws after Finance Minister Makis Keravnos flatly rejected proposals from opposition parties.
Keravnos told Phileleftheros on Sunday he opposes new bank taxes, calling on parties to weigh the data carefully. He warned that foreclosure reform is not a simple matter.
AKEL is pushing for a second time to tax banks’ excess profits, whilst ELAM wants to increase the special levy banks already pay.
Over 20 proposals from all parties except DISY and DIKO propose changes to foreclosure legislation. AKEL will demand debate today on its December 2023 bill allowing borrowers to appeal to court to suspend foreclosure of their primary residence. The Movement of Ecologists (Greens) co-signed the proposal.
The left-wing party called on others to join forces to defeat what it called the “banks’ lobby”, attacking DISY and DIKO for approving the current foreclosure framework in 2018.
AKEL argued the bill would restore borrowers’ right to appeal to court and suspend home foreclosures in cases of illegal charges and abusive clauses by banks.
“The critical thing now is to unite forces around the bill AKEL filed with other forces and defeat the banks’ lobby inside parliament. The dilemma for everyone is one: with the banks or with society?” it said.
AKEL’s call extends to all parties, including DIPA and EDEK from the governing coalition. Many foreclosure proposals came from these parties. Some DIKO MPs might support the proposals despite the party’s opposition, according to concerns expressed within parliament.
Four months before May’s parliamentary elections, parties are staking out positions on banking issues expected to dominate the campaign.
AKEL’s move to revive bank taxation within 2025 keeps the issue current during the pre-election period. ELAM, which previously backed AKEL’s excess profits tax, filed its own bill to avoid the same position due to ideological differences.
DISY and DIKO MPs will voice their opposition to both bank taxation and foreclosure changes at today’s Finance Committee meeting. The two parties will cite 2023 legislation establishing a Special Foreclosure Court.
That legislation remained on paper because it does not oblige the Supreme Court to establish a Foreclosure Court—the provision is optional. The Greens filed a similar bill last December.
Despite DISY and DIKO objections, the proposals will reach the committee for debate soon, with the aim of bringing them to the plenum before parliament dissolves in April.