Τhe government is on “alert” as the already high food prices are accompanied by the risk of higher electricity bills and more expensive fuel. Three ministries are preparing measures to prevent heavy burdens especially on vulnerable households.
The battle against soaring prices has different characteristics this year compared to last year for three reasons.
First, the financial staff last year had more fiscal room as there was no obligation to produce high primary surpluses. The fact that 2022 ended with a balanced budget at the primary level was considered a success. This year, however, a primary surplus of more than 1.1% must be produced to pave the way for additional support measures, while for 2024 the budget is tightened even more due to the target for a primary surplus of 2.1%, i.e. around 5 billion euros.
Secondly, the European Commission as well as the Eurogroup have instructed the member states to avoid horizontal support measures, which will soon have an impact on consumers, especially on electricity bills.
And thirdly, regarding the “open fronts” of last year (e.g. war in Ukraine) another one has been added since October 7: the tension in the Middle East.
