EU Commission Concerned Over Greek Government’s Handouts

The European Commission published its ”2019 Spring Package” on Wednesday, in which it comments on the economic situation of every member state and proposes reforms to coordinate fiscal policy across the Union.

For Greece, the Commission focuses on two main aspects of the Greek government’s economic policies which were recently announced.

The first regards the 120-installment payment scheme for those who owe taxes to the Greek state. The European Commission expresses its concern that this plan might lead to the creation of a fiscal gap which could equal 0.6 percent of Greek GDP, endangering the country’s fiscal stability.

The ”hole” in Greece’s public finances could reach €600 million from this scheme, the Commission notes in its report.

The second issue concerns the same scheme for those who owe money to the country’s social security funds. The projected deficit in this area could reach an additional €300 million for this year, adding yet more burdens on the next Greek government.

The current Greek administration strongly opposes these estimated figures, calculating that the Greek state will not only not lose revenue, there will be an augmentation of at least €200 million, since people who currently are not repaying any debt to the state, will begin to do so.

At present, more than 90,000 debtors in Greece have applied to join the 120-installment repayment plan.


Source: http://greece.greekreporter.com/category/greek-news/tourism/

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