Citing the falling inflation rate, Finance Minister Makis Keravnos made it absolutely clear on Thursday that any remaining relief measures would get scrapped by month’s end.
The minister recalled that the measures had been intended as temporary, providing some relief for people from the rising cost of living.
But current circumstances do not justify continuing this support, he told a television news channel.
The zero VAT on a dozen essential products already ended at the end of September. And Keravnos confirmed that the discount on electricity bills would lapse on November 1.
Still, the minister said the government will continue monitoring the situation and, should the need arise, roll out new support measures.
“We don’t want a society that relies on welfare,” he said. “We want to improve things for the middle class, have better incomes and high employment.”
Currently the unemployment rate stands at 4.5 per cent – a very satisfactory index according to the minister.
But more crucially, said Keravnos, inflation has continued declining. Fresh data for September show the inflation rate at 0.7 per cent – down from 1.5 per cent in August and 2.1 per cent in July.
Regarding the prices of fuel products, the minister said these have dropped by 11.4 per cent – though he didn’t specify the timeframe.
He noted that when the government began subsidising motor fuel, crude oil went for $100 a barrel. Now, and despite a slight spike due to events in the Middle East, it’s going for €74 a barrel.
Earlier, the government had taken flak from opposition parties – particularly left-wing Akel – when telegraphing its intention to stop the relief measures.
Meanwhile Keravnos was also asked about the stance of the Disy party, which has vowed not to vote for legislation giving public-sector workers a 1.5 per cent pay rise.
The wage increase had been earlier agreed between the government and trade unions, but still needs to be enacted into law. Without Disy’s votes, there is a risk the bill won’t go through.
Asked how the government might handle Disy’s veto, Keravnos demurred, suggesting it is Disy who should be worried about their stance.
