Government adopts its 8th package of market interventions to combat inflation

At Wednesday's cabinet session government passed its 8th package of measures to help citizens and the economy deal with rampant inflation, allocating almost €300 million for the measures. The new six month package includes a €140 million extension of its existing energy subsidies.

Prime Minister Andrej Plenković presented that latest round of market interventions at today’s cabinet session: “The message is as follows; electricity for households will remain the same as they are now. Electricity for micro, small and mid-sized businesses will remain the same for the first 250 thousand kilowatt hours. For natural gas, the prices will also effectively remain the same.”

Additionally, pensioners will receive a one-off payment of fifty euros ahead of Easter. Meanwhile, some fifteen thousand unemployed Homeland War veterans will receive a one-off payment of one hundred euros. Subsidies for public transport, the agriculture sector and student meals are also foreseen in the package.

Union leader Krešimir Sever welcomed the decision to extend the aid measures, noting that poverty is on the rise: “So that people have at least some stability. So that they can take a part of their income, which is small, and repurpose it for food and other expenses.”

Meanwhile, Deputy Prime Minister and Finance Minister Marko Primorac commented on whether or not the measures would be extended yet again after the six month deadline: “We'll see. Obviously, we're monitoring the situation, but we're adopting these measures with the plan of gradually phasing them out, which is in line with European policy.”

One wonders however, if anyone in the government building, unions or businesses are interested in allowing for true price discovery in the market. So far the total value of government's interventions into the market stands at €8.3 billion.

Meanwhile, in parliament the opposition commented on the government's latest package of measures, saying that while they will support the measures, they consider them little more that pre-election populism.

“Obviously, we will support the continued suppression of energy prices for our citizens, because there is no other option. However, it should be noted that for the past three years, during this spiraling inflation in the Eurozone, everyone in the opposition has advocated for the adoption of a long-term energy strategy, so that we can finally become energy independent. Plenković and the HDZ constantly use the same populist pre-election manipulation,” said SDP MP Sanja Radolović.

Source: HRT