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SYRIZA’s populist promises

26 January 2015 / 16:01:46  GRReporter
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Throughout the election campaign the radical left SYRIZA responded to the attacks of its political opponents that it had no economic programme, arguing that the party leader had already announced it during a speech in Thessaloniki in September 2014.

At the last pre-election party meeting in Athens last Thursday Alexis Tsipras was firm that the measures announced in Thessaloniki will be literally implemented, as the first task of the government of SYRIZA "will be to relieve those affected by the humanitarian crisis."

GRReporter recalls the measures in question, reprinting an article by journalist Tasos Telloglou in protagon.gr:

  1. Free power supply for 300,000 households that are below the poverty line. SYRIZA has already submitted to parliament an amendment regarding the immediate restoration of power supply to the beneficiaries of the programme for social support through lower electricity prices. Each household will receive free electricity of up to 1,200 kilowatt hours per quarter or 3,600 kilowatt hours per year.
  2. Programme to subsidise food coupons for 300,000 poor families. It is planned that the programme be carried out by a public coordinating body with the assistance of local governments, the Greek Orthodox Church and solidarity organisations through the related social groceries that have been established in recent years.
  3. Free healthcare for all and a drastic reduction in the participation in the cost of medicines. The programme provides for free access to healthcare for all, both uninsured and insured in the public system, and to the necessary medicines for all, with a drastic reduction in prices and no participation in the costs for specific categories of citizens.
  4. Programme to provide housing. The programme will be implemented by the organisation for workers’ housing after reinstating it. It provides for the utilisation of old and abandoned buildings and hotels. The aim is initially to provide 25,000 flats, subsidising the rent with 4 euro per square metre.
  5. Aid for people with low pensions. "We will immediately restore the 13th pension of 1,262,920 pensioners whose pension is less than 700 euro. This will be the first step towards the full restoration of the 13th pension and 13th salary for all. This will take place gradually and in combination with the economic conditions," were the exact words of Alexis Tsipras.
  6. Special card for travelling by the public transport means. It will have a reduced to a symbolic price for the long-term unemployed and for those who are below the poverty line. The card will be annual and will apply to all public transport means, and the beneficiaries will pay a symbolic price for it.
  7. Repealing the equal value of excise duties on heating oil and diesel. "We will restore the initial retail price of heating oil to the amount of 0.90 euro per litre. Returning it to the level before making it equal to the corresponding excise duty on diesel not only will not lead to costs but will result in financial gains, as it will significantly increase consumption, because people will again use this type of heating," said Tsipras in Thessaloniki.
  8. Cancelling the property tax. SYRIZA has promised to introduce a tax on large real estate and to increase property prices by at least 30-35%. According to Alexis Tsipras, this tax will be progressive, and the taxable threshold will be high. It will be levied neither on the main housing of taxpayers nor on the property of the middle class, luxury houses being an exception to this rule.
  9. Restoring the non-taxable minimum of 12,000 euro for all.
  10. Restoring the amount of the minimum salary. The minimum salary will again be 751 euro for all, regardless of the age of working people. According to the econometric model of SYRIZA, "the restoration of the minimum salary not only will not lead to financial costs but will provide economic results. In the first year alone, domestic demand will increase by 0.75% and gross domestic product by 0.5%. Moreover, it will create 7,500 new jobs."

"The last three measures are in direct contrast with the commitment of SYRIZA to respect the rule of balanced budgets from now on. Based on their own calculations the described measures would create a fiscal gap to the amount of 3.5 billion euro per year (2.2 billion from the restoration of the non-taxable income and 1.3 billion from the elimination of the property tax).

These actions will not be accepted by the partners of Greece. SYRIZA are aware of this. Therefore, the measures that SYRIZA announced in Thessaloniki, defining them as its own "red line" violate the "red line" of balanced budgets. So?", Telloglou ends his commentary.

Tags: PoliticsSYRIZAEconomic programmePopulism
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