The State Budget Office in Parliament is sounding the alarm for the effects of catastrophic natural phenomena on the economy, while recommending special attention so that the management of economic costs does not affect the country’s fiscal performance.
The State Budget Office in the Parliament considers it likely that there will be a negative impact on the GDP, at least in the short term, while stating that the insurance of properties against the risk of the climate crisis is not a matter that can be left exclusively to the private sector, i.e. insurance companies. At the same time, it calls for the greatest possible utilization of community funds in order to restore the recent damage, but also for the “distribution” of fiscal costs in more budgets, so as not to undermine the objectives for the primary surplus.
If this does not happen, additional revenue sources should be sought, according to the Budget Office, while it also stressed the need for a better organization of state mechanisms, in order to deal with similar phenomena in the future. Special mention was also made of the role that Europe should play.
In addition to the allocation of funds for the restoration of disasters, another request is to pay special attention so that the costs of restoration are not taken into account in their entirety for the calculation of the primary result. Additional resources are also needed, especially for the wider Mediterranean region at the heart of the climate crisis.
