The high prices on the market swings the Greek Government, as it became clear during yesterday's meeting of the Council of Ministers. At the same time great efforts are made to find revenue as a result of which next week the government will announce the state-owned companies that go for privatization.
Prime Minister George Papandreou is trying to convince the “triple” not to push for the implementation of further reforms related to salaries and pensions, emphasizing that their reduction will not contribute to the increase of the competitiveness of the economy. The fight is currently fought to mitigate the condition for 40 years of service to receive full pension be reduced to 37 years.
At the meeting of the Council of Ministers yesterday were not made decisions, but there were many collisions. Minister of Economy Luka Katseli reported that the increase in to over 4% is due to the increase in special consumption taxes on fuel, alcohol and cigarettes, as well as of the VAT which the Ministry of Finance imposed.
On the other part, Finance Minister George Papkonstantinou said that inflation in Greece was a lot above the average for Europe even before the imposition of the taxes. Other ministers also spoke about the high prices, which came out out of control and affects mainly low-income households.
The discussion was kept also around the need for privatization, and the plan will be ready in the next few days in order to be presented in next week for approval at the regular meeting of the Council of Ministers. Privatization will affect the energy industry, tourism and infrastructure businesses. Among the state owned companies, which will be released for sale are the railway company, casinos, the LARKO metallurgic plant, the water supply company of the capital. A decision has not yet been taken, but some of the companies will be put up for sale while for the others investors will be contacted.
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