NEWS

Insurance contributions to be slashed

insurance-contributions-to-be-slashed

The coming period will see a new package of tax breaks, but in the current phase the government’s priority is to reduce employers’ social insurance contributions, according to Prime Minister Kyriakos Mitsotakis on Monday.

In an interview with Star TV, Mitsotakis said that relevant announcements on the issue will be made in the fall. The scope of the intervention, he added, would depend on fiscal targets for 2021 and the amounts “we will receive from Europe,” but he did not elaborate further. 

He also dismissed speculation both of early elections and of an immediate reshuffle. “Neither a reshuffle nor elections are in my plans,” he said.

As for the impact of the coronavirus pandemic on the economy, he refrained from predictions about the size of the recession but expressed “moderate optimism.” He added that he expects “many billions to come from Europe to support the economy,” which will be added to the already announced € 24 billion package.

Earlier on Monday, leftist SYRIZA leader Alexis Tsipras announced his party’s proposal for the economy’s recovery from the repercussions of the coronavirus, which includes what he called a “fiscal extension package” worth 13.4 billion euros that would support the real economy as well as households, workers, the unemployed and the self-employed.

The proposals include reducing value-added tax on cafes and restaurants to the lowest tax bracket of 6 percent and support for businesses that have been forced to suspend their operations due to the pandemic and for their employees.

Tsipras accused the government of failing to adequately support businesses struck by the fallout of the pandemic, particularly cafes and restaurant, and of undermining labor rights.