The governor of the Financial institution of Greece, Yannis Stournaras, didn’t rule out the potential of 2 rate of interest cuts by the European Central Financial institution, talking on the First Program.
It confirmed the route of the ECB’s financial coverage in direction of additional easing, after the primary rate of interest reduce, which can’t be dominated out to have 1 or 2 strikes within the second half, in all probability after the summer time. He didn’t specify whether or not the following ones will probably be of the order of 0.25%.
Particularly, he stated that the reply can’t be to scale back VAT, however to extend competitors. In relation to the shadow financial system: in our nation, as in Italy, it’s at 25% of GDP, the very best in Europe. If a chunk of tax evasion is crushed, the income of the state will improve in order that it may extra simply train social coverage with out creating new deficits.
He particularly referred to ENFIA, stressing: «Too unhealthy it did not exist and it was one of many causes we went into disaster. Property tax is taken into account one of many fairest taxes and in Greece it’s even fairer. As a result of exactly as a result of there’s a massive underground financial system, part of the underground financial system is drained into the true property market. So, imposing a property tax is a good tax. It was one of many very proper measures and really rightly it remained. Property tax is a particularly reasonable tax and it exists all over the place world wide»
Lastly, he emphasised the necessity to improve competitors between banks, in order to shut the hole between deposit and lending charges.
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