Banks: Mitsotakis’ announcements in the budget – The plan to “trim” fees

Prime Minister Kyriakos Mitsotakis announced yesterday, during a speech in Parliament, a government intervention plan to “trim” excessive bank fees, particularly compared to the European average. He is expected to elaborate further during his speech on the 2025 Budget in Parliament next Sunday.

Mr. Mitsotakis reiterated his dissatisfaction with the inadequate response from banks to government calls to reduce fees for various transactions. This issue is especially pressing now, given the availability of tools like the IRIS system and the dramatic increase in card transactions.

“High fees, low deposit interest rates, loans that are not granted, properties that remain unsold and fail to drive down market prices,” the prime minister remarked, urging lawmakers to anticipate imminent government actions.

According to protothema.gr, the final framework for these interventions is still being finalized, with discussions ongoing between the government, banks, and the Bank of Greece. Recently, Central Bank Governor Yannis Stournaras acknowledged at the OT Forum that Greek banking fees remain higher than the European average.

“When cash circulation has dropped to just €4 billion, it means people now trust the Greek economy. Therefore, you can’t charge excessively high fees when they use a card,” Mr. Stournaras said, calling on banks to exercise moderation in their fee structures. At the same time, the Bank of Greece is already planning to raise the daily transaction limit within the IRIS system from €500 to €1,000 starting next year.

Any government intervention must also comply with legal requirements, as under new European regulations, the government cannot impose a special levy on banks and arbitrarily allocate the proceeds through social spending.

Government sources underline that the intervention will be legally sound and will result in greater costs for banks than PASOK’s amendment proposing a tax on their “excess profits.” “Don’t frustrate people,” remarked Kostis Hatzidakis on SKAI 100.3 yesterday, adding, “We refused to impose a windfall tax, but that doesn’t justify charging any professional or Greek citizen €3 for sending €100. Come on now!”

Notably, the prime minister referred to properties that remain in bank portfolios without being sold, leaving open the possibility of further action in this area. Whether room for intervention exists on this front remains to be seen.

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