Spending has exploded because we are paying the unemployed

Speaking to the parliamentary finance committee during the debate on the budget for 2012, deputy finance minister Philippos Sahinidis argued that pension funds, unemployment and interest payments are the main reason for exploding expenses. "Spending increased due to subsidies to insurance funds, additional sponsorship to OAED due to an increase in the number of the unemployed and an extra fund related to interest payments."

He also noted that the debt will keep on increasing as long as there are deficits.

But there were many who questioned the goals of the budget for 2012 at the same meeting, with the main objections raised by Luka Katseli. She said that the recession will exceed 5.5%, in contrast to the prediction of the ministry that it would reach -2.8%. She also asked for the strengthening of the purchasing power of households, the reduction of VAT and the channeling of liquidity to the market, but without the intervention of banks.