Greece amidst the crisis can take measures to repel the new wave of price hikes that will strike the economy with great severity...
Some even speak of price increases of 20% to 25% additionally on food and other goods... if this energy shock lasts another month.
As a matter of fact, we will all soon witness a storm in food, supermarkets, and a continuation of high fuel prices, all of which constitute an explosive mix for weak Greece.
With oil (brent) at 110 dollars, and despite the deal between the USA and Russia, we saw that global fuel prices not only did not decrease but actually increased, proving that... the cause is not the war in Ukraine and the Ukrainian strikes on Russian oil refineries, but the fact that Hormuz is closed.
Obviously, the war against Iran is a clear mistake.
Furthermore, let us be realistic, the deal between Russia and the USA to channel up to 5.7 million tons of oil to the USA and international markets is not sufficient even for 3 to 4 days... so it is a drop in the ocean of problems.
What Greece must do immediately
1) Conclude an agreement with Russia and purchase Russian oil.
Since the USA can, the whole world can.
If we do not do this, then Greece is probably trapped in the personal ambitions of Mitsotakis to assume a prominent position in Europe in the coming years.
The interest of Greeks cannot be held hostage to the personal ambitions of Mitsotakis.
Greece must make a deal with Russia on energy, it is the most realistic solution.
2) Greek banks will achieve record profits of 5 billion euros in 2026, and in the period from 2024 to 2026 they have already achieved profits of 14 billion euros.
For 2027, Greek banks can achieve profits of up to 5.3 billion euros.
A windfall tax, e.g. 20%, would run up against the ECB and stock market reactions.
Something else can be done, however, to fully freeze the DTC, the 8 billion deferred tax credit through which banks in a sense do not pay taxes, and for both 2026 and 2027, having them pay taxes normally would be a good and painless solution for all parties involved.
The benefit for state coffers over the two-year period would be approximately 2.2 billion euros.
An explanation: The DTC, the deferred tax credit, does not concern 100% of the tax, meaning the 22% (tax rate) on taxable profits, yet we aggregate it as a general bank contribution to the National Economy.
Alternatively, for 2 years, instead of banks being taxed at 22%, they could be taxed at 30%, this 8% increase over two years means 800 million in revenue over the two-year period.
3) Impose a special tax on refineries with 2 billion in profits in 2026 and a similar figure in 2027, an increase from a 22% tax rate to 30% could create a reserve of 320 million euros.
Conclusion
With these actions, a total of 1.1 to 1.2 billion would be gathered in the two-year period of 2026 to 2027, and together with the DTC freeze of 2.2 billion, cumulatively over 3.4 billion, which the government could use to curb price hikes.
These actions, alongside the deal with Russia, would deal a serious blow to the speculative plans of involved producers and middlemen, and would represent a strong national intervention in favor of the vulnerable.
It takes political courage, coordination with bankers and refineries.
Also, as a reward to banks and refineries, balancing measures could be taken after the two-year period, with provisions made known to investors so that it becomes clear that the measures will be temporary, followed in better times by rewarding measures for banks and refineries... through an extraordinary reduction in taxation or other measures.
It takes political courage.... Greece first, the homeland first.
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