Government begins to roll back its anti-inflation measures

Government presented its latest package of measures aimed at mitigating the negative effects of inflation on Tuesday. Valued at 175 million euros, the aid is gradually being reduced in a bid to stabilize the natural gas and electricity markets.

Speaking at Tuesday’s cabinet session, Prime Minister Andrej Plenković said that the new, higher prices citizens will be confronted with will still be below market prices. He also noted that around 117 thousand lower income citizens will continue to receive a monthly voucher of €70.

"The reasons we are embarking on the gradual loosening and withdrawal of the measures right now are firstly, to stabilize energy prices on the market. Secondly, like all other EU countries, we are gradually withdrawing from the measures and returning to what is normal in a market economy, to market conditions and to those prices that people, the economy and institutions, would have factored in their budgeting had there not been any government measures," Plenković said.

Speaking at a press conference after the cabinet session, Economy Minister Ante Šušnjar commented on how the gradual reduction of the measures would affect the economy: "Regarding entrepreneurship, subsidies for consumers up to 250 thousand kilowatt hours will also be partially extended. Entrepreneurs who consume up to 15 thousand kilowatt hours can expect an increase in their monthly bill of around 29 euros."

However, some in the opposition are not happy with the government’s decision. SDP MP Boris Lalovac said that ultimately, citizen's living standard will further decline as a result: "The measures that government is slowly withdrawing will only result in a new reduction in citizens' living standard. Especially in terms of utilities, which was one of the ways that living standard was being protected."

Source: HRT