Ministry of Finance

By George Gilson

Workers who will be asked to work fewer hours and get a lower salary once the economy reopens will be supported by the state, Finance Minister Christos Staikouras promised on Real FM on Monday.
The plan, inspired by Germany's "Kurzarbeit" and Britain's 'short-term work scheme' will see the state undertake part of each worker's losses for a transitional period.

The period during which the sale of heating oil is permitted will be extended beyond April 30, Finance Minister Christos Staikouras said on Saturday, responding to a spike in demand following the sharp drop in prices.

As the economy prepares to gradually break free from the shackles imposed by the coronavirus restrictions, the government is drafting the transition from a generalized support system, focusing on the 800-euro allowance to employees, to targeted measures to boost corporate liquidity.

The relevant announcements will be made on Monday by Prime Minister Kyriakos Mitsotakis.

The Greek economy, hit by coronavirus restrictions, is expected to shrink by 5-10 percent this year, the country's finance minister said on Saturday.

"It seems we have been settling at a range of between 5 and 10 percentage points," Finance Minister Christos Staikouras told Open television station.

Greece raised 2 billion euros ($2.2 billion) Wednesday with a 7-year bond auction, a result the government hailed as confirmation of market confidence during difficult times created by the coronavirus pandemic.

The government has another package of business support measures ready for May, top officials at the Finance Ministry assure, as the coronavirus pandemic continues to keep the economy locked down, which will inevitably lead to the use of cash reserves.

The mayor of Aegina island claimed in comments on Saturday that former finance minister Yanis Varoufakis, head of the Mera25 party, refused to stop for a police inspection on the island where he has a summer home.

According to the mayor, Yiannis Zorbas, police had been conducting routine inspections last Thursday when they signaled to Varoufakis to pull over.

Finance minister Christos Staikouras welcomed the results of the historic Eurogroup pandemic rescue package which he depicted as a satisfactory but hardly optimal compromise.

Staikouras said that Greece's three main demands were met.

The first is direct liquidity for businesses which will not be laid out through banks.

The European Union estimates that the Greek economy will contract by 8 to 9 percent this year due to the coronavirus pandemic, much higher than the government's projections.

Officials in Brussels revealed that forecast on Wednesday, during a conference call with the finance ministers of the Greek government regarding the assessment of the Greek economy.