Opposition parties looked poised last night to change a key government bill that provides for state-backed borrowing despite a presidential appeal to approve it as is and not risk making it unenforceable.
House finance committee chairman, Diko MP Angelos Votsis, said the committee had finished discussion of the bill and the plan was to put it to the vote on Friday.
Votsis signalled that the bill will be amended, despite the president’s appeal.
“That’s the government’s view, but we have a democracy and bills are approved by parliament,” he told the state broadcaster.
The Diko MP suggested however that any changes the opposition makes on Friday will not change the substance or the philosophy of the bill.
The party was looking to limit the amount of state-backed guarantees from €1.5bn to €1bn and possibly raise it later if all goes well.
But perhaps the most disputed change, which is also backed by other parties was to appoint the auditor-general as an observer to oversee implementation of the scheme.
Affording the auditor-general a role in the process is something the government does not want.
On Monday, during a meeting with party leaders at the presidential palace, Nicos Anastasiades said the government will not be making further changes to the scheme to help businesses and urged them not to make amendments themselves.
“The president has said that the government has submitted its final proposal to parliament and asked for no further amendments that either alter the character, the philosophy of the scheme, or render it completely unenforceable,” Finance Minister Constantinos Petrides said afterwards.
“We hope we eventually have a conclusion according to the president’s suggestions,” said the minister speaking before the House finance committee met later in the day.
During the meeting at the presidential palace, Petrides made an extensive presentation of the country’s economic state of affairs.
“So far there have been more than 57 measures to support the economy with a total fiscal cost in excess of €1.2bn-€1.3bn,” Petrides said.
The minister warned parties that the state’s resources were not inexhaustible, and they should not be making promises that could not be met or risk throwing the economy off course.
Petrides said the business world was expecting the scheme, adding that the debate should stop and have it approved.
Parties have made numerous proposals and amendments to the bill, which the government disagrees with.
One of the main obstacles has been Diko’s insistence to have the auditor-general oversee the loan process. The government opposes this, arguing that it is already under his remit to scrutinise state monies.
In an interview with Politis on Sunday, Anastasiades said the auditor has every right to scrutinise state expenditure, including the guarantees afforded by the government for loans to businesses.
“But to sit on a committee and decide on the loans essentially replaces the executive and becomes part of the decisions,” Anastasiasiades said.
The president stressed that he was not refusing the audit but to jointly decide with the auditor-general.
“In no other country, and I emphasise this, are there similar claims or participation.”
The scheme provides for €1.5bn in state-backed loans: €300m for small businesses with up to 10 staff, €1bn for small and medium enterprises, and €200m for larger entities.
