23/07/2004 12:07
The message is clear: Current conditions demand the imposition of taxes, since the government’s measures to strengthen the state funds, such as the tax amnesty and the legalization of the illegal buildings have now become an “unrealistic scenario”.
The secret accounts have been approved, despite doubts for its effectiveness and the ability to collect £50 million in 2004. Then, the law on the legalization of the illegal constructions, which has been described by the Attorney General as anti-constitutional has led government to reconsider the imposition of taxes.
StockWatch sources reveal that even if there are legal solutions to overcome the obstacles of the legislation, there is little room to become effective due to a time shortage. It is noted that the second part of the legislation on building amnesty will be approved in October.
The message…
According to StockWatch sources, Mr. Keravnos has already announced the government’s decision to impose new taxes or increase the existing ones if the measures on tax amnesty and legalization of illegal buildings prove ineffective. The Finance Minister’s statement that the “amendments have eliminated the effectiveness of the measure” shows clearly that there are no margins of time.
Besides, these two measures was the utmost solution, the effectiveness of which would be the determining factor for a fiscal consolidation.
“The differentiation of the government’s tax policy is, therefore, inevitable at the current stage”, economic analysts told StockWatch.
The alibi…
Same analysts noted that the government must take strict measures of fiscal consolidation since the eurozone accession and the convergence with the Maastricht criteria is obligatory for all 10 new EU member states. The entry in the Exchange Rate Mechanism 2 is a strategic target of the government’s policy.
An alibi for the Finance Minister is also his inability to proceed to privatizations due to a “disagreement” among the collation government parties and the prospects to deal with the penalties of the Stability Pact for the excessive deficit.
Same analysts said that even if the EMU accession is transferred after 2007, the government will have no other option but to act as the adoption of the euro is an EU directive.
The secret accounts have been approved, despite doubts for its effectiveness and the ability to collect £50 million in 2004. Then, the law on the legalization of the illegal constructions, which has been described by the Attorney General as anti-constitutional has led government to reconsider the imposition of taxes.
StockWatch sources reveal that even if there are legal solutions to overcome the obstacles of the legislation, there is little room to become effective due to a time shortage. It is noted that the second part of the legislation on building amnesty will be approved in October.
The message…
According to StockWatch sources, Mr. Keravnos has already announced the government’s decision to impose new taxes or increase the existing ones if the measures on tax amnesty and legalization of illegal buildings prove ineffective. The Finance Minister’s statement that the “amendments have eliminated the effectiveness of the measure” shows clearly that there are no margins of time.
Besides, these two measures was the utmost solution, the effectiveness of which would be the determining factor for a fiscal consolidation.
“The differentiation of the government’s tax policy is, therefore, inevitable at the current stage”, economic analysts told StockWatch.
The alibi…
Same analysts noted that the government must take strict measures of fiscal consolidation since the eurozone accession and the convergence with the Maastricht criteria is obligatory for all 10 new EU member states. The entry in the Exchange Rate Mechanism 2 is a strategic target of the government’s policy.
An alibi for the Finance Minister is also his inability to proceed to privatizations due to a “disagreement” among the collation government parties and the prospects to deal with the penalties of the Stability Pact for the excessive deficit.
Same analysts said that even if the EMU accession is transferred after 2007, the government will have no other option but to act as the adoption of the euro is an EU directive.
Related Articles
