Growth is expected to be 6-6.5%. pensions which will be given next year, according to information from financial staff. The percentage is significantly higher than the 4.5% predicted by the Stability Program just 4 months ago. The budgetary cost of such an increase is approximately 600 million euros, compared to 420 million euros, which would cost the budget a 4.5% increase.

The revision is associated with a jump in inflation, with which the law links the increase in pensions. In particular, according to the Wrouci Law 4670/2020, the increase in pensions must be equal to the average inflation and growth rate. The previous estimate was based on an assumption of inflation of 5.9% and growth of 3.1% and thus averaged 4.5%. However, the Commission’s latest summer estimate predicts inflation at 8.9% and growth at 4%, so the average is 6.5%.

The government says that the decision will be made on the basis of a new macroeconomic scenario that is being developed and will be based on the latest data on GDP, tourism and inflation. They point to a slight decrease in July inflation to 11.6% compared to June and do not exclude that the average inflation for the year will end up in the range of 8-8.5%. However, they estimate that average inflation and growth, and thus pension growth, will not fall below 6%. Of course, this is less than inflation.

Yesterday the Minister of Finance also spoke about the upward revision of pensions Christos Staikouras. “An increase in pensions in 2023 is a given that will be much higher than the initial estimates due to inflation,” Mr. Staikouras said to Mege.

Another 200 million in the 2023 budget will cost the abolition of the solidarity contribution to civil servants.

In addition to the increase in pensions in 2023, for the first time in 12 years, pensioners will see an increase in their incomes due to the elimination of the solidarity collection. This cancellation, especially for pensioners, corresponds to a budgetary cost of 270 million euros. Thus, in general, the increase in the income of pensioners will amount to 870 million euros.

The abolition of the solidarity levy for civil servants will cost another 200 million euros in the 2023 budget.

Mr. Staikouras spoke yesterday about the “third fiscal space”, referring apparently to the margin created in the third quarter of the year by increasing revenues, mainly from tourism, and which will be provided to society with new support measures. This is expected to be announced by the Prime Minister at TIF.

Regarding the fuel subsidy (Fuel Pass 2), he said that the amounts have been transferred from the Ministry of Finance to the relevant ministry. Already since yesterday, some amounts have been credited to the digital card, and, according to him, since yesterday, some amounts have also begun to be credited to bank accounts.