Former Finance Minister Makis Keravnos slammed the government over its handling of the alarming increase in the inflation rate, calling for effective measures to put an end to the rapid increase in prices.
“The business community is concerned at the high inflation rate, but alarmed at the lack of effective measures undertaken by the government to control the situation, which risks getting out of hand,” Keravnos told the Financial Mirror during an interview.
Keravnos who served as Finance Minister in the government of Tassos Papadopoulos and is a senior member of the centre-left DIKO party is widely credited for bringing state-finances under control.
He says oil prices have been rising for several years now and that is nothing new. Other factors causing price increases are high real estate prices feeding into higher rentals, the professional services (lawyers, doctors, plumbers, electricians and others) continuing to over-charge customers while underestimating their income and as always, the retailers greed in jacking up prices more than warranted.
“Until now they (government of Christofias) have been feeding the public political explanations, but it no effective measure have been taken to curtail the problem.”
Keravnos has high respect for current Finance Minister Charilaos Stavrakis, adding “Stavrakis is well aware of the situation and knows how to tackle the situation but as yet has not enforced any action plan to stem the uncontrolled price rises.”
Clampdown
Keravnos said if he was finance minister his action plan would be the following:
Deal with the land/real estate issue feeding into higher rentals especially for businesses who are quick to pass on the added charges to clients. Improve the time that it takes for the issue of final permits for buildings, which by itself keeps adding to costs, hence prices. Reduce transfer fees and other real estate related charges. Clamp down on the professional services who keep increasing prices without any check.
More immediately, give incentives for alternative energy production to lessen the 100% dependence on oil imports and even more effective, free up the market and encourage competition in all sectors of the economy, including the banking sector.
In the meantime, the inflation rate hit 4.9% in May 2008, well above the EU average as food and energy costs kept rising.
