0,5 to 10 euros hike per sq/m on all real estate

Endless ordeal

 

After a dramatic meeting in Thessaloniki that lasted more than four hours, the cabinet decided on taxation of all structured real estate with specific charge at an average of 4 euros/square meter that will vary from 0,5% -10 euros depending on the region.

The special fee will be charged as lump sum to the PPC accounts for 2011, and in installments in 2012, aiming to cover around 2 billion needed to close the black hole in the current year’s budget. And in order to collect the fee of 2011 within the current budget, the collection must be completed by February.

These announcements were made by finance minister Evangelos Venizelos, who recognized the toughness of the measure, however, spoke of a historic decision that will lead the country to achieve the primary surplus as early as April 2012.
He noted that without the need for interest repayment the deficit in 2011 will be determined at only 1,8 billion euros, against 25 billion in 2009, while the goal is to move to a surplus of 3 billion euros in the next year. Along with the borrowing, the deficit will be 17,1 billion this year aiming at 14,9 billion in the next.

He said that this is a historic unanimous decision of the cabinet, both because it will serve the objective of achieving a surplus and because it has a moral and social basis, as it distributes more weight to the wealthier citizens.

Venizelos was once again assertive in that these decisions are not related to the collapse of talks with troika, describing the relationship between us as an "easy matter". He even claimed a personal communication with Olli Rehn earlier today.
He noted that the difficulties brought by the new data are in the change of the stance of eurozone member countrie which for various reasons, have reinforced the speculation about an exit mechanism for countries of the eurozone. A rumor that according to Venizelos will continue because of considerations that dominate the markets.

Apparently the deputy prime minister spoke about Germany, and cited as possible causes for these changes of attitudes the defeats of ruling parties in regional elections, variations in government coalitions, etc. He described September and October as extremely rough months, as 16 Eurozone parliaments will have to take decisions to strengthen the EFSF, among other things.

Finally, he spoke of delays over the mid-term target, making indirect sharp comments to his predecessor, now environment minister Giorgos Papakonstantinou, as he stated that the revenue target was less than it should, and that the collection mechanism did not function satisfactorily.