ECONOMY

Measures have already cost €10 bln

measures-have-already-cost-e10-bln

So far the fiscal impact from the measures to combat the effects of the coronavirus pandemic on the economy adds up to 9-10 billion euros. The costs are set to grow further in the coming months, for a number of reasons.

The main reason is that Greece is now moving toward the heart of the expected recession, when the government will announce further measures to contain the pandemic’s economic effect: In the coming days the Finance Ministry will announce easier terms for issuers of bills of exchange who continue to be hurt by the pandemic, along with support measures for the holders of the bills.

The second reason is that the ministry appears determined to load this year’s budget with the full major financial burden for tackling the pandemic’s consequences, because Greece’s creditors have waived all fiscal targets for 2020. The government is planning ahead on the presumption that a primary budget surplus target will be imposed for 2021, even if that is not as high as 3.5% of gross domestic product. Sources say early 2021 budget blueprints provide for a primary surplus of around 1.5-2% of GDP.

Meanwhile a bill tabled in Parliament provides for the extension to June of the 25% discount for the timely payment of tax and social security dues as well as debt repayment tranches for enterprises, self-employed professionals and employees hurt by the pandemic. It also extends the exclusion of farmland from the supplementary property tax for this year too, and provides more favorable clauses on road tax for motorists who decide to resume the operation of their vehicles for just a few months in the year.

A circular by the Independent Authority for Public Revenue asks landlords whose tenants paid only 60% of their monthly rent after suffering as a result of the coronavirus measures to declare which months they received reduced rent for by June 22. Then tenants will need to confirm the data from their landlords by June 26.

In case a rental contract has been terminated, owners will need to declare it by the end of next month.