Public finances can withstand support to struggling companies, Fiscal Council says

The financial support given to companies affected by the ongoing pandemic announced by the Ministry of Finance this week seems to be financially bearable without serious consequences on public finances, the Fiscal Council has said.

In a press release, on Friday, Chairman of the Fiscal Council, Michalis Persianis says that pending the announcements for the final cost, the Fiscal Council has estimated the cost to be close to 3 million euros.

He notes that although the secondary effects have not yet been calculated, the specific costs are expected to partly stimulate employment and general economic activity.

Persianis stresses the importance of the fact that the support announced is targeted in terms of the number and characteristics of the beneficiaries.

This approach, he adds, gives predictability to the total expenditure that will be made, with the final amount expected to be announced when the analysis of the tax returns of the beneficiaries is completed.

He also points out as “extremely positive” the utilization of the tax returns submitted by the beneficiaries in the third quarter of 2019 to calculate the amount of support.

The practice, it is added, ensures a fair distribution of the amounts based on objective criteria, which reflect the degree to which the beneficiary has been affected.