Europe

IMF rejects spending plans | eKathimerini.com

The International Monetary Fund (IMF) opposes the government’s increase in pensions and salaries for civil servants. As required by law, the pension will be raised by about 5% from next year and the abolition of solidarity tax will be extended to retirees. .. The IMF is also skeptical of plans to reduce its social security burden.

“The impact of a permanent reduction plan for social security burdens and the abolition of solidarity taxes must be carefully considered,” said Greece, which was sent earlier this month as part of the IMF’s mission: Article 4 of the 2022 Consultation Report. Stated. The government added that it must resist “pressure to raise pensions and salaries for civil servants.”

Treasury Minister Christos Stykoulas has convinced Skai that additional financial space will be found later this year as he estimates that there will continue to be a need for assistance in raising fuel. He added that the abolition of the state’s solidarity tax on pensioners from January 2023 remains a government priority.

This is not the first time the IMF has challenged this government’s priorities. The view is that other goals are of paramount importance during these difficult times. “Recent increases in health care and public investment must be sustained,” he said.

Otherwise, the report is generally positive, focusing on a strong recovery, admitting that the government continues to reform despite difficulties, and reducing non-performing loans. In addition, the emphasis is on full repayment of the IMF loan, so the post-financing valuation process is complete.

Inflation is estimated to be 3.5% this year and 2.6% in 2023, compared to the government’s stability program forecasts of 3.1% and 4.8%, while inflation is 6.1% this year and in 2023. It is projected to reach 1.2% (government forecasts of 5.6% and 1.6%, respectively). The IMF adds that debt is declining and risk is manageable in the medium term.

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https://www.ekathimerini.com/economy/1187374/imf-rejects-spending-plans/ IMF rejects spending plans | eKathimerini.com

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