According to a government official, when the new VAT takes effect this month, consumers will see no rise in prices because industrial and business organizations have pledged action to absorb the two percent increase, vowing not to pass it along to the public.

"It is important to support the real income and not pass the increases onto retail prices," said Economy, Competitiveness and Shipping Minister Louka Katseli.

Her views were echoed by the head of the GSEBEE workshops and light industry union Dimitris Asimakopoulos, who stressed:  "There is such a big reduction in turnover that not only can we not increase prices, even if this would be justified, but we are forced to reduce prices."

When told of the minister's promise, a shopper in a local store grunted, and said: "Did she mention that there really is a Santa Claus, too?"