Greek Farmers and the OPKEPE Controversy: Brussels-Athens Disagreement on Current Account Deficit

How dangerous is the disagreement between Brussels and Athens regarding the current account deficit? Reports indicate a divergence in estimates concerning Greece’s current account deficit, with Brussels projecting it at 8% of GDP and Athens at 6%. While both figures are significant, the wide gap concerns Brussels. Fortunately for Greece, the large current account deficit stems from the private sector rather than public expenditure, specifically due to high private consumption. Private savings in Greece remain low, making the country vulnerable to international pressures. Historically, the twin deficit (both current account and government balance) led Greece into crisis in 2010. To boost private savings, tax incentives for participation in private insurance, particularly property insurance and pension products, are recommended. Additionally, increasing production through new investments is crucial. Regarding defense spending, key financial circles contacted by our column express skepticism about Europe’s rearmament efforts, viewing an arms race with Russia or China as detrimental to the EU. They advocate for communication channels with these countries instead. Meanwhile, issues persist with infrastructure projects like Greece’s railways, where studies are conducted hastily without proper consultation with local authorities, as seen in the ‘Suburban Railway of Western Attica’ project facing backlash in Aspropyrgos. On energy infrastructure, the Vertical Gas Corridor enabling gas flow from Greece to Ukraine and Moldova has drawn criticism from gas traders who claim it violates EU regulations. Turning to taxation, the closure of the controversial OPKEPE and its integration into AADE raises concerns about overburdening an already efficient tax authority. Lastly, business highlights include Techniki Olympiaki’s real estate ventures in mature markets like Germany and strategic locations in southern Attica, along with ongoing maritime investments and upgrades to the Marina of Samos.