Election 2023: Reading the results for the economy

The election was held on Sunday, May 21. The ballot box spoke…and it showed a 20-point difference between the two main “combatants” of the election race. This huge difference was fueled by announcements on the economic front from both parties. Here’s a big surprise: If anyone expects the official opposition’s “maximist” promises to lead the way on their own, as it might have done in other times like ’81, they’d be wrong.

Vangalis Durakis writes

A people who seemed to be entering the Euro era, “like the stock market, when the uneducated learned the hard side of the ‘game,’ after a brief period of ‘prosperity.’ In the long term of memory austerity At that time he also saw Banks to “shrink rolls” A people who were forced to live with the benefits of the coronavirus immediately after leaving the notebooks… a people who finally “caught” themselves in a precise “hurricane”, it seems that they have learned their lesson. : And it’s nothing more than better “weighting” the data and promises about his pocket. enikonomia.gr.

Maturity of voters

Both major parties in power “delivered” on their pre-election promisesBut there was one key difference in their economic plans: about one’s tactics Gradual increase in wages and pensionas Tax reductions. Another explained that it was the first day of his election Raise the minimum wage by nearly 13%That he would adopt “Automatic Price Table” of Wages To cover the “wave” of accuracy, it will be eliminated Excise Duty on Fuels, that he will “reduce” VAT, that he will give priority to pensioners, that he will “break” the bidding … and, and… more: the winner of the election contest does not open. .. state treasury and… give all. Instead, the “big promises” were defeated by the “house” state by state.

If nothing else, it shows that the Greek suffers but … learns: he now carefully observes all promises, “weighs” them, and … displays a maturity appropriate to the occasion.

What plans do the two “gladiators” have for salary?

So it is interesting to see what the two “gladiators” promised in the salary and pension sector.

New Republic

• Committing over a four-year period to increase the minimum wage to 950 euros (from 780 euros today) and the remaining salary by approximately 25% (1,500 euros, today’s average salary is 1,170 euros).
• Employer and social security contributions will be reduced by a further percentage

Syriza B.S.

• It declares that it will increase immediately – especially from 1^The July 2023 – Minimum wage 880 euros
• All salaries will continue with automatic annual indexation based on the previous year’s inflation
• It also promotes 10% increase in salary of government employees

ND – What promises does SYRIZA make to pensioners?

What do the two major parties say about pensioners?

New Republic

• He promises a new 3.4% increase in pension from 1/1/2024.
• It will provide additional and total pensions within two months.
• Makes permanent the complete exemption of ex-EKAS beneficiaries from medical expenses. EKAS pensioners till 2020 to cancel participation in medicines and intervene.
• It will support pensioners with a personal difference: the measure is expected to become permanent, so that annual increases are not lost, as happened to 1.1 million pensioners this year. Repayment of individual difference allowance (200-300 euros) is in place for those who missed the 2024 hike. However, a part of that difference will be added to the pension and the rest will be paid. Offered as an extraordinary favor.

Also gives 13^The Edited by Syriza

Syriza

• He promises that the 13th pension will be paid on a staggered basis with the June 2019 pension. Specifically, the amount was scaled from 30% to 100% depending on the pension received by the beneficiary.
• 2.5 million pensioners and look back over a four-year period. These are 11 months period from deducted gifts and additional pensions.
• 7.5% increase in 2023 for all pensioners, regardless of individual difference.

What the two big “fighters” have to say about tax-free

Promises were also made to reduce taxation: so what did the two “gladiators” say?

New Democracy essentially “rewards” families with children with an “enhanced” tax-free allowance: it is set at 8,636 euros for singles, but increases by 1,000 euros for each child, for couples with children.

• Specifically, the tax-free amount increases from 9,000 to 10,000 euros for a couple with 1 child, from 10,000 to 11,000 euros for a couple with 2 children, from 11,000 to 12,000 euros for a couple with 3 children and from 12,000 euros for a couple. Children 12,000 to 13,000 euros.

On the other hand, SYRIZA is tax-free, with a new single tax-free threshold of 10,000 from 8,636 euros today.

Two “combatant” proposals for indirect taxes

• The promises of the two gladiators are also interested in other “pieces” of income tax, but also in the field of indirect taxes. ND announces a “memorandum” until 2027 phasing out the presumption fee, levied on freelancers with a “haircut” of 30% presumptions, while also talking about a gradual reduction of VAT. For its part, SYRIZA says it will abolish the application fee immediately after the election, reducing it to the lowest level in the EU. Fuel duty and food VAT reduced to 6%.

ND “race” in development

But where will the money get to implement all these announcements? Funding for ND interventions The basic assumption is that the Greek economy is moving at a rate of 3% per year. This pace is challenging because it implies a high flow of investment. Therefore, ND puts growth as its main source of “funding” to pay the €2 billion a year “blue” bill. Also, her promises are “reserved”.

For example, Cost of notice for abolition of pretense charge This amounts to 400 million euros for professionals and businesses. This fee starts from 400 euros and reaches 1,000 euros. According to Kyriakos Mitsotakis, ND has committed to canceling 20% ​​of the pretense fee in 2025, 30% in 2026 and 2027 at the end of four years. So this amount is spread over four years. .