Accustomed elections parties announce benefits. In keeping with custom, all political forces, and especially the two largest, claiming power with a large number of polling claims, have formulated and presented their benefit packages in such a way as to appeal to the widest possible sections of the electorate, but at the same time also to special groups, since … every vote counts.

Also, and given that the election debate is missing big issues that are sure to affect our lives in the coming years, such as artificial intelligence or climate change, for example, benefits are the way out – often the only and always the easiest. – so that the parties emphasize their brand, their principles, their political identity.

The ND announced a package of measures with a “moderate” fiscal cost, which its leaders estimate at just under 9.5 billion euros over the next 4 years (1.3-3.3 billion per year). Thus, the role of benefits as well as fiscal responsibility is played. He is also favored by the fact that in his first term in office he has already implemented measures to increase disposable income, and is about to add to them. In addition, as a government at a time when European fiscal rules were relaxed due to the pandemic and the energy crisis, it was able to spend funds to support the victims.

SYRIZA, with the stress of a bidder, presented a package that, in terms of 4 years, is worth almost ten times the amount, about 83-84 billion (19.8-20.7 billion euros per year). At least, this is how the government calculates, referring to the data of the budget and the General Accounting Department.

The President of SYRIZA and officials of the official opposition, trying to prove that they fall short of fiscal responsibility, dispute the calculations and claim that the cost of the measures is 5.6 billion euros, apparently referring to the annual basis.

The secret of difference

The difference between “yes” and “no” calculations is chaotic and has to do with the following:

1. SYRIZA does not include the cost of increasing spending on health to 7.5% of GDP and on education to 5% of GDP, which are estimated at 9 billion euros per year. However, the SYRIZA program states that the “ultimate goal” is for health care spending to reach 7.5% of GDP, so this specific spending (4.7 billion euros) can be considered to increase gradually, and not from the first year.

2. Deducts €3.7 billion of corporate tax revenue from the rest, based primarily on the profits that energy companies had in 2022. The problem is that the costs are fixed and will weigh on the budgets for years to come, while the taxation of excess profits is extreme and nothing guarantees that they will exist in the coming years.

3. There are discrepancies in the assessment of the measure to reduce VAT on food to the minimum rate, which cost SYRIZA 960 million euros, while the government claims that it is 1.5 billion euros, citing GLA and budget data. . In addition, the reduction of the fuel excise tax to the lowest EU rate is 1.5 billion euros, according to SYRIZA announcements on TIF, while the government estimates it at 2 billion euros, always based on GLK data.

What is certain is that, given that the new Stability Pact is expected to be implemented in 2025 and Greece will have to show a primary surplus above 2% of GDP, the cost of SYRIZA measures approaching 10% of GDP far exceeds endurance. budget. Even NT measures that were marginally calculated to stay within a primary surplus of 2% of GDP may need adjustments or countermeasures to cover them, depending on the precise target for primary surpluses negotiated with the EU. .

ND: Gradual reduction of premiums for claim-insurance

The measures announced by Prime Minister Kyriakos Mitsotakis are calculated as follows on an annualized basis in 2026, the last year before the elections:

· Wages of civil servants: 500 million euros.

· Pension increase: 1.132 billion euros.

8% increase in disability benefits: €95 million

€1,000 increase in tax-free allowance for families: €77 million

8% increase in the minimum guaranteed income: 49 million euros

· Fee reduction for pretense: 222 million euros. Notably, the pretentiousness fee is reported to be reduced by 20% in 2025, another 30% in 2026, and completely eliminated in 2027, bringing the cost to 443 million euros.

· Reduced insurance premiums: €241 million. Insurance premiums will be reduced by 0.5% in 2025 and another 0.5% in 2027, bringing the cost to €509m.

· Maternity allowance: 40 million euros

Youth season ticket: 30 million euros

10% reduction in ENFIA on insured property: €47 million

Permanent registration of the full exemption of EKAS beneficiaries from the cost of medicines: 10 million euros

New jobs program: 10 million euros

Reduced presumptions: €8 million

The cost of ND events per year is as follows:

*2024: 1.3 billion euros

*2025: 2.2 billion euros

*2026: 2.5 billion euros

*2027: €3.35 billion

SYRIZA takes action

The most financially difficult measure of the SYRIZA program is the increase in spending on health and education to 7.5% and 7% of GDP, respectively, at a cost of 9 billion euros per year.

The backdating to pensioners, the restoration of the 13th pension and the increase in pensions without taking into account personal differences costs just under 3 billion euros per year, and somewhere from 1 to 1.5 billion euros – the fiscal costs of reducing VAT on food and 2 billion reduction of excise tax on fuel.

However, it should be noted that the official opposition officials who wrote the SYRIZA program put an asterisk on the benefits announcements. Page 3 specifically states that the measures will be implemented “taking into account the fiscal potential of the Greek economy”.