[ad_1]
With the country living the most difficult moment of the battle with him coronavirus despite the application of the general prohibition, On the table of Maximos is the proposal to extend the confinement, since three weeks is not enough time to control the epidemic..
But nevertheless, An extension of the quarantine until December 15 is expected to spoil the government’s plans to open the market in December. Perhaps the billing of vacations will be saved, where it is traditionally particularly high and last year it reached 3.5 billion. euro.
Retail, catering and entertainment businesses that have been hit hard by the pandemic are waiting for the Christmas holidays to take a breather in liquidity that will keep them afloat. However, the picture on the coronavirus front complicates the government’s plans for a gradual opening of the market starting in early December. The situation is evaluated daily and it will be examined when and for how many days the companies will reopen. At the same time its expansion emergency shutdown opens bigger wounds in the economy. The recession deepens and the deficit skyrockets.
Already a week before the presentation of the new budget next Friday in Parliament The government is manually revising the draft forecasts, announcing a recession of more than 10% for 2020, from 8.2% that was its initial estimate. while forecasts for the primary deficit worsen. Until now, the General Accounting Office only saw the public debt “gallop” until the moment came for the deficit to be advanced and the focus of attention turned towards this size, which in 2010 was one of the reasons that led the country to the memoranda.
According to Deputy Finance Minister Theodoros Skylakakis, the general government deficit is driven by an increase in public spending due to support measures, low tax revenues and a sharp contraction. GDP to a new record close to 10% of GDP or 17 billion euros. That is, the two most important sizes of the economy, the deficit and the recession, have come to “compete” in the forecasts of all economic analysts, which is what will outperform the other … This usually occurs when an economy is at war, where there are no more counters and all fiscal indicators move uncontrollably.
Following this development The 2021 budget is based on the unfavorable scenario that foresees a deficit of 3% of GDP next year, and it is one of the worst because it puts the country on fiscal adventures with the institutions.. Even with the flexibility provided by the escape clause, things will not be so easy, especially in the area of debt, which this year will rise to 205% of GDP, and with discussions at the eurozone level on how to measure the impact. of pandemic moving in a cloudy landscape. Most worryingly, Theodoros Skylakakis constantly repeats that we “borrow” this money from the future, thus awakening the nightmare of memos.
Next Wednesday, November 18, the Commission’s report will be released, which will comment on the performance of the Greek economy in the context of the 8th assessment and there will be strict comments on “red” loans and electronic auctions.. The exhibition will be debated in the Eurogroup on November 30, while a few days before, on November 24, it will be on the table of the Euroworking Group.
[ad_2]
