Greek Prime Minister Kyriakos Mitsotakis echoed statements, made earlier in the morning by his finance minister, that the government will not impose a one-off windfall tax on banks’ profits at the end of the year.
Speaking during a Parliament debate on a draft bill including provisions to set the minimum monthly wage in the country, Mitsotakis nevertheless promised that an intervention is pending over commissions charged by the country’s four systemic banks and a few non-systemic banks on all types of transactions – especially POS retail sales – as well as the spread between the interest rates offered on deposits as opposed to the rate banks tack on to borrowing.
The draft was later ratified, with 157 deputies (from ruling New Democracy party) voting in favor in a roll call vote in the 300-MP legislature. The country’s communist party, KKE voted against, while all other opposition parties reserved their position to be addressed in the Plenary.
Mitsotakis later left the plenary session due to back pain, Parliament President Costas Tassoulas later told attending deputies.
Earlier, Mitsotakis said from Parliament’s podium that “…there are issues regarding the operation of the banking system that need to be addressed, such as high commission fees, low interest rates on deposits, the issue of mortgages, which are not being allocated with the best rates, as well as properties that have not yet been sold in order to enter the housing market. We’ve asked for their feedback, but we have not been satisfied with their reaction and very soon you should expect interventions by the government to address these problems. However, let’s be realistic, at this juncture, ‘a flash in the pan’ like a special windfall tax will not solve the problems faced by the people,” he said.
In reference to the draft bill’s substance, setting the monthly minimum wage in the private sector, he said the draft legislation aims to entrench two principles, namely, that the latter cannot be lowered, only raised; and that the exact rate of increase will be determined by an objective mechanism, such as an agreed to algorithm.
Mitsotakis: When we assumed power the minimum monthly wage was 650 euros
Mitsotakis also took a swipe at the previous leftist SYRIZA government that ruled Greece up until 2019, reminding that the minimum monthly wage was 650 euros when center-right New Democracy (ND) assumed the country’s reins, rising to the current 830 euros.
He said the current figure ranks the country 11th in Europe, while pledging to increase the minimum monthly wage to 950 euros.
