PASOK press spokesman Kostas Tsoukalas has strongly criticized Greek Prime Minister Kyriakos Mitsotakis following cabinet announcements on state debt relief and fuel price measures.
Responding to the economic package presented at the cabinet meeting, Tsoukalas said the prime minister appeared panicked and had unraveled the narrative of his administration's economic success story. He described the measures as more of the same, asserting that Mitsotakis remained officially a tax-obsessed politician who obsessively refused to reduce fuel excise duties while plundering citizen income.
PASOK, formally known as the PASOK Movement for Change, is Greece's primary center-left opposition party. The party has consistently challenged the ruling center-right New Democracy government over its handling of living costs, private debt, and taxation following years of economic restructuring in the Mediterranean nation.
Controversy Over Private Debt Relief
Tsoukalas pointed to previous statements made by Minister of National Economy and Finance Kyriakos Pierrakakis on September 2. At that time, Pierrakakis rejected PASOK proposals regarding private debt, claiming Greece fell below the European Union average for overdue debt indicators, praising the out-of-court settlement mechanism for producing impressive results, and accusing PASOK of building its political presence on false impressions.
Highlighting that the prime minister announced a 120-installment repayment plan for debts owed to the state just 28 days later, Tsoukalas questioned why such a step was necessary if the government had already resolved the problem. He added that the prime minister offered only patches in the face of lawlessness by loan servicing firms.
The spokesman stated that 120 installments without a reduction in interest and surcharges failed to address the root issue. He questioned why the government insisted on draining households and businesses with exorbitant interest rates created during the economic crisis, and why it refused to restore legal protections for primary residences modeled on Law 3869/2010.
Law 3869/2010, widely known in Greece as the Katseli Law, was enacted during the Greek financial crisis to protect primary homes of insolvent debtors from foreclosure. In recent years, Greek banks have transferred billions of euros in non-performing loans to specialized debt servicing agencies, prompting widespread debate over debtor safeguards and enforcement practices.
Tsoukalas argued that the prime minister essentially admitted the failure of the out-of-court settlement mechanism by refusing to make creditor participation mandatory. He also criticized new provisions requiring borrowers to pay a 15 percent advance deposit to suspend foreclosures, asking whether good-faith debtors could reasonably raise such funds within strict deadlines of a few days.
Criticism of Fuel Tax Policy
Turning to energy prices, Tsoukalas said Mitsotakis responded to rising fuel costs with inadequate measures after keeping the public waiting for 12 days. He stated that the prime minister lacked a coherent strategy, relying instead on temporary communication management to quiet social discontent while deferring solutions to European Union institutions in Brussels.
Fuel prices in Greece remain heavily influenced by the Special Consumption Tax, known locally as the EFK. The tax is a fixed excise duty levied on petroleum products including motor fuels and heating oil, forming a substantial component of retail fuel prices alongside value-added tax.
Tsoukalas asserted that Mitsotakis stubbornly refused to lower the Special Consumption Tax despite other European governments taking action to ease fuel costs for consumers. He said citizens recognized that PASOK possessed the political will and technical knowledge to protect borrowers, regulate loan servicers, and curb market speculation.
Opposition Reform Proposals
The spokesman outlined four specific measures that PASOK urged the government to implement immediately:
- Reducing the Special Consumption Tax on motor fuels and heating oil.
- Establishing a mechanism to return windfall value-added tax revenue generated by rising prices to consumers, based on the Italian model.
- Conducting systematic checks on profit margins across the entire supply chain, from oil refineries to retail pumps.
- Creating a permanent mechanism to tax excess profits of oligopolies across all economic sectors, activated upon recommendations from independent regulatory authorities.
