The Hidden €40 Billion, Tax Evasion, and Surpluses in Brussels: Stassis for Eurelectric and Tsafos on Renewable Energy

The €40 billion figure may have sparked the appetite of the economic administration for additional tax revenues, but it highlights traps in the entire anti-tax evasion campaign. The difference between declared income by individuals (nearly €110 billion) and consumption levels (€150 billion) in 2023 indicates a significant gap. Through anti-tax evasion measures, the government has managed to bring much of this amount into public funds, leading to known budget surpluses. However, further measures targeting undeclared or underreported rents could yield more revenue, though any increase in income taxation will likely result in a decrease in VAT revenue due to hidden incomes being directed towards consumption. The primary strategy is clear: reducing tax evasion will eventually allow for horizontal tax cuts, particularly for the most socially unjust taxes like VAT. Uncertainty remains about whether fiscal conditions will mature by 2027 or beyond due to downward revisions in growth forecasts. Meanwhile, confusion persists regarding the impact of tariffs on the Greek economy. Eurobank’s recent study outlines optimistic and pessimistic scenarios, with the latter warning against the lack of significant trade agreements and reciprocal tariffs against major trading partners. Despite these uncertainties, the European Central Bank emphasizes two forms of uncertainty—data and model uncertainty—that affect predictions. With recovery fund extensions unlikely, Greece faces challenges in implementing its projects efficiently. Rising producer prices indicate potential consumer price hikes, while declining business deposits signal operational difficulties. Regarding political infiltration, Bundesbank’s Michael Toefer discusses far-right influences within the banking system, emphasizing that oversight focuses solely on professional qualifications rather than political affiliations. In energy matters, George Stassis represents DEH at Eurelectric’s annual event in Brussels, discussing regional energy specifics. Deputy Energy Minister Nikos Tsafos reaffirmed the government’s commitment to continuing renewable energy project licensing despite current mandatory cuts affecting profitability. Lastly, the construction market faces tensions between extreme positions and expectations following the removal of building bonuses, highlighting legislative issues and calling for balanced policies.